profit

/ˈpɹɒfɪt/
financial gain

The company's profits increased by 15% this quarter.

The company earned 15% more money than last quarter.


BusinessFinance
formal

Money gained from a business activity after deducting costs.

After selling all inventory, the shop recorded a profit of $5,000.

The shop made $5,000 more than it spent on goods.

Opposite of 'loss'. Often used in accounting and business reports.

formal

To benefit or gain an advantage from something.

She profited from her investment in stocks.

She gained money from her stock investment.

Commonly used in financial contexts but also figurative (e.g., 'profit from experience').

Collocations

net profitprofit after all expenses and taxesgross profitprofit before deducting expensesprofit marginratio of profit to revenuemake a profitto earn money from business activities

Related Phrases

turn a profitphrase
to start making money after initial losses
profit motivephrase
the driving force to earn money in business

Pro Tip

Profit vs. Revenue

Revenue is total income before expenses; profit is what remains after subtracting costs. Example: Revenue = $100,000, Expenses = $70,000 → Profit = $30,000.

Gold Rule

Calculate Profit Correctly

Always subtract ALL costs (materials, labor, taxes) from total income to determine profit. Never confuse with 'gross profit' (after direct costs) or 'net profit' (after all expenses).

Word Origin

From Old French 'profit' (noun) and 'profiter' (verb), derived from Latin 'profectus' (advance, progress), from 'proficere' (to accomplish), from 'pro-' (forward) + 'facere' (to do).

Usage Notes

In business, 'profit' is distinct from 'revenue' (total income) and 'income' (personal earnings). Always used with financial contexts unless figurative (e.g., 'profit from a lesson').

Word Breakdown

pro-
forward, in favor of
prefix
+
-fit
made, done
root (from Latin 'facere')
English Dictionary