Revenue vs net profit..

 

Here’s the clear difference between revenue and net profit:

📌 1️⃣ Revenue (Top Line)

Revenue = Total money a business earns from sales before any expenses are deducted.

• Also called Sales, Turnover, or Top Line

• Does NOT consider costs

• Shows how much money came in

Example:
If you sell:

• 10 flats × ₹50,000 commission
  Revenue = ₹5,00,000

This is the total income generated.

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📌 2️⃣ Net Profit (Bottom Line)

Net Profit = Revenue – All expenses

Expenses include:

• Marketing costs

• Office rent

• Salaries

• Travel

• Ads

• Taxes

• Utilities

Formula:

Net Profit = Revenue – Total Expenses

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📊 Simple Comparison Table

Aspect	Revenue	Net Profit
Meaning	Total sales income	Final earnings after expenses
Expenses deducted?	❌ No	✅ Yes
Also called	Top line	Bottom line
Shows	Business size	Business profitability

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💡 Practical Example (Real Estate Case)

Let’s say:

Revenue = ₹13,00,000
Expenses:

• Ads = ₹2,00,000

• Office + staff = ₹3,00,000

• Travel + misc = ₹1,00,000

Total expenses = ₹6,00,000

Net Profit = ₹13,00,000 – ₹6,00,000
= ₹7,00,000

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🎯 Simple Understanding

Revenue tells you:
👉 “How big is my business?”

Net Profit tells you:
👉 “How much money do I actually keep?”