Because revenues do not account for costs or expenses, a company’s profits, or bottom line, will be lower than its revenue. There is a standard way that most companies calculate revenue.

Learn what net income means for businesses and individuals, how it's calculated, and why it's a crucial financial metric.

Profit is calculated using the following calculation: Profit = Revenue – Total costs For example if a business has revenue of £50,000 and total costs of £41,000, they will have an overall ...