What does profit mean?
Profit is the money a person, business, or organization gains after expenses, losses, and other costs have been subtracted. The word can also be used as a verb: a company may profit from increased demand, while a person may profit from a useful lesson or an opportunity to learn. In its financial sense, profit is distinct from revenue, which is the total income received before costs are deducted, and from gross profit, which is calculated before operating expenses and other deductions. Outside business, “profit” often suggests a valuable benefit or advantage, as in “profit from experience,” but the term can also carry a negative implication when someone makes a financial gain at another person’s expense. Its origin reflects the idea of bringing something forward or advancing, reflecting how a successful result produces an advantage.
The financial gain obtained after costs, expenses, or losses are deducted; also, a beneficial result or advantage.
"The business recorded a higher profit than it had in the previous year."
In financial contexts, profit means the amount left after the relevant costs have been deducted from income.
To gain a financial advantage or to benefit from an activity, decision, or situation.
"Small businesses can profit from the increased use of online payments."
The verb is commonly used with “from,” “by,” or “on,” as in “profit from,” “profit by,” and “profit on.”
The plural is commonly used for individual financial gains or for the earnings of a business.
"The company reported substantial profits despite challenging market conditions."
The word profit comes from a Latin past participle meaning “brought forward,” so its original sense was an advance before it came to mean financial gain.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of profit
The word entered English through Old French profit, from Latin profectus, “gain” or “advance.” Latin profectus was the past participle of proficere, formed from pro-, meaning “forward,” and facere, meaning “to do” or “make.” The development from an advance or gain to financial surplus occurred in medieval usage, and related forms such as proficient and professor continue to reflect the same Latin root.
Related word forms
How profit is actually used
In its financial sense, profit is normally used with “make,” “earn,” or “generate,” and it refers to a gain after relevant costs have been accounted for. In the broader sense, it can mean any worthwhile benefit, though it often suggests a practical or material advantage.