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Revenue vs Profit

Revenue is everything a business takes in; profit is what's left after costs.

The idea

Revenue is all the money a business takes in from selling things. Costs are everything it has to pay out: materials, wages, rent, shipping, taxes. Profit is what's left when you subtract costs from revenue, and if costs are bigger, the business has a loss instead. A company can have huge revenue and still lose money, so the two numbers answer different questions. 🧮

Words to know

revenue: All the money a business takes in from selling its stuff, before paying anything.
costs: Everything a business has to pay for, like supplies, workers, and rent.
profit: The money left over after a business pays all of its costs.
loss: What happens when a business spends more than it takes in.
margin: How big the profit is compared to the revenue, shown as a percent.

Try it — no account needed

Match each money word to what it means.

0 / 4 matched

In the full lesson

1Match the pairs
2Work out the number
3Make the call

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

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