Profit is the financial gain that a business makes after subtracting all its expenses from its total revenue. It represents the money that remains after covering costs such as salaries, rent, and materials. Profit is a key indicator of a company's financial health and success. There are different types of profit, including gross profit and net profit. Gross profit is calculated by subtracting the cost of goods sold from total revenue, while net profit accounts for all expenses, including taxes and interest. Understanding profit helps businesses make informed decisions about pricing, spending, and growth strategies.