The differences will depend on the specific company. No, net income is not gross profit. Net income is the amount of money left from revenues after all expenses have been deducted, including cost ...

It signifies the profit a company earns ... Calculate your individual gross income and net income to see the difference. Your net income may be much lower after taxes and deductions.

The equation for working out gross profit: Revenue – Cost of sales = Gross profit Expenses (overheads) – these are the costs that do not change as production increases or decreases.

Working from the top line items in the income statement, cost of goods sold is subtracted from revenue, and the difference is gross profit. All operating costs subtracted from gross profit lead to ...