What's the difference between income and profit?

by Sandy
(Littleton, CO)

I hear these terms used interchangeably sometimes, and I wonder what's the difference between profit and income.

Thanks!

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Thanks Sandy!

I agree that people use these terms interchangeably, but they do mean different things. Income means revenue, which is sales or other income like scrap, interest, etc. Profit is the positive number you get from subtracting your expenses from your income (revenue).

Hope that helps!

And thanks for Asking the Expert!