WordGarden.ioprofit
B2Pronunciation
UK
- /prˈɒfɪt/
US
- /ˈprɑfət/
Meanings
Noun
money made in a business or deal after costs are considered
Verb
to make money or gain financially from something
to benefit or gain an advantage from something
Beyond the definition
Imagine you bake cookies and sell them at a school fair. The money you earn isn't the same as your profit. Profit is what remains after you pay for all your ingredients—the flour, sugar, and chocolate chips. It is the sweet reward that stays in your pocket once all costs are covered.
Profit isn't just about cookies, of course. Businesses try to earn it by selling goods or services for more than it costs to make or provide them. A non-profit organization, however, works differently; it doesn't focus on making money for owners but instead uses any extra money to support its mission. Beyond money, you can even "profit" from an experience—like when you learn an important life lesson from a difficult mistake.
Profit refers to the financial gain realized when revenue exceeds expenses. In its most common context—business—it represents the money a company retains after deducting all costs associated with producing and selling its goods or services. This includes everything from raw materials and labor to rent, marketing, and taxes.
Think of it this way: if you sell a painting for 30 on the canvas and paint, your profit is $70. A healthy profit margin is often seen as an important sign of a successful business. Professionals often distinguish between "net profit" (the amount left after all expenses and taxes are paid) and "gross profit" (revenue minus only the direct cost of goods sold).
However, the word "profit" isn't limited to bank accounts. To "profit from" something means to derive a benefit or advantage. You might say, "She profited greatly from her time studying abroad," referring to her personal growth rather than her finances.
The concept of profit is a cornerstone of capitalism and economic growth, as it incentivizes innovation and efficiency. Yet, it remains a heavily debated topic in discussions regarding fair wages, ethical business practices, and social responsibility, reminding us that the pursuit of profit often has far-reaching consequences.
Examples
- 1
Business result
The shop made a small profit in its first month.
- 2
Expenses
After rent and salaries, there was almost no profit left.
- 3
Company report
The company reported record profits last year.
- 4
Sale price
We sold the old car at a profit.
- Phraseat a profit
for more money than it cost
More examplesFewer examples
- 5
Business costs
Their profit margin is lower because shipping costs have gone up.
- Phraseprofit margin
the gap between the cost and the selling price
- 6
Charity status
The charity is not run for profit.
- Phrasefor profit
mainly to make money
- 7
Business survival
Small farms often struggle to turn a profit.
- Phraseturn a profit
start making more money than you spend
- 8
Investment gain
Investors hope to profit from the new technology.
- Patternprofit from + source/opportunity
gain money or an advantage from it
- 9
Learning from mistakes
She learned to profit from her mistakes instead of hiding them.
- Patternprofit from + experience/mistake
use it in a way that helps you
- 10
Crisis context
Some companies were accused of profiting from the crisis.
See also
Similar
- gain
- earnings
- net income
Shades of meaning
Contrast
Do not confuse
Used with (collocations)
- make a profit
- turn a profit
- profit margin
- net profit
Word family
Explore
- break-even point
- cash flow
Forms and spellings
4 forms open this card.
Main spelling
- profitnounverb
Forms
- profitspluralnounverb
- profiting-ing formverbnoun
- profitedpast tenseverbnoun