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Difference Between Profit and Revenue

Profit vs Revenue

In accounting, economics, law, and real property, “profit” and “revenue” are defined with a slight difference. Basically, “profit” refers to the amount earned left over after all the expenses are taken out in a particular time frame. “Revenue” refers to the total amount generated by a company without taking out expenses for services provided or goods sold within a particular time frame.

“Profit” is defined as “the income minus the expenses.” It is directly related to the services provided and the goods sold. “Profit” refers to the profits in accounting or profits in economics or profits in real property. Accounting profit refers to the difference between the price of the purchase and the cost of bringing services or goods to the market. “Profit” in economics refers to two different things which are related with each other–normal profit and profit. Normal profits are the total costs including implicit and explicit costs for an investor or entrepreneur for a particular venture; whereas, abnormal or pure or excess profits refer to the differences between a company’s total revenue and all the costs incurred. Profits in real property refers to a non-possessory interest in land. It means the owner has a right to take petroleum, timber, minerals, and other natural resources from another’s land.

“Revenue” is the total sales that a company has achieved for a given period of time. “Revenue” is also referred to as “gross income” or sometimes called “sales.” It is the money an organization receives in making goods or providing any kind of service that the organization provides. The investment gains and other sources of funds are altogether the revenue of an organization or company. In many countries, “revenue” is also called “turnover.” Revenues can be obtained in any form like interests, royalties, dividends, etc.

In accounting, “revenue” is called “top line” because it is placed at the top of the income statement while, on the contrary, the “bottom line” is “net income.”

Just like income, revenue is also of different types like sales revenue which means revenue obtained from selling goods. Tax revenue, meaning the income the government obtains from taxes paid by the taxpayers. Gross receipts are the annual revenues of non-profit organizations. This revenue is comprised of donations either by individuals or from corporations, or revenue from the organization’s work or mission, etc.


1.“Profit” can be defined as the difference between the money generated from the sale of services or goods or the use of assets and capital associated with an organization or company or individual after the expenses or costs are deducted. 2.“Revenue” is defined as the total amount generated by a company without taking out expenses for services provided or goods sold within a particular time frame.

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