What Is the Difference Between Revenue and Income?


Quick Answer

In business, "revenue" is a term that refers to all the money a company makes. Income, on the other hand, is the net profit of that company. In other words, income is the money left over after business costs have been covered.

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Full Answer

Typically, the income of a company is calculated by subtracting expenses, such as payroll, the cost of materials, taxes and interest on loans, from overall revenue. The resulting number is the profit that the company made.

Companies normally keep a record of their earnings on a quarterly basis, meaning that the year or season is broken up into four periods of time when profit and costs are monitored. The quarterly earnings are then reported to investors and board members, and the progress of a company is also recorded over time.

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