Definition
Net profit is the company's total profit after all expenses and taxes have been deducted. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Net profit on the board and restates it: “Company's total profit after all expenses and taxes have been deducted.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Net profit as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Net present value analysis
Evaluation of investment projects using net present value calculations.
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Net present value ratio
Financial ratio comparing net present value to initial investment.
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Net profit ratio
Financial ratio comparing net profit to total revenue or assets.
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Net worth
Total value of assets minus total liabilities for an individual or company.
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