Net profit, also known as net income or net earnings, is a financial metric that measures the amount of money a company has left over after all of its expenses have been paid. It is calculated by subtracting all of a company's expenses from its revenue. This includes the cost of goods sold, operating expenses, taxes, and any other costs associated with running the business. The result is the net profit, which represents the profit that is available to be distributed to shareholders or reinvested in the business.