Net profit represents the number of sales dollars remaining after all operating expenses, interest, taxes and preferred stock dividends have been deducted from a company’s total revenue. It is referred to as the bottom line, net income or net earnings is a measure of the profitability of a venture after accounting for all costs.

The final representation of how much money a company has earned from doing business over the course of a year, shown on the company’s income statement. It takes all the money a company has received from operating and subtracts all expenses, including operating expenses, financing costs, and taxes. Net profit is calculated as total revenue minus total expenses.