The difference between gross profit and net profit is as follows:
1. Definition
Gross profit is the gross profit, which is the difference between the purchase and sale of goods. Net profit is the after-tax profit of the enterprise.
2, reflecting the situation
Gross profit reflects a certain period of time sales revenues and costs, while the net profit can reflect the enterprise in a certain period of time operating costs and the sum of profits after income tax.
3. Calculation method
Gross profit = excluding tax selling price - excluding tax price = product sales revenue - actual cost at the time of sale. Net profit = total profit - income tax expense.