Income vs. revenue: what’s the difference?
The short answer
Revenue refers to the total amount of money generated by a company from its business activities before any expenses are deducted. It represents the gross earnings. Income, on the other hand, often refers to the net amount remaining after all expenses, taxes, and costs have been subtracted from the revenue. For individuals, income typically means the total earnings from all sources.
What they have in common
Both income and revenue refer to monetary amounts received and are used in financial contexts to describe earnings over a period of time.
Examples
income
- Her annual income has increased steadily over the years.
- They live comfortably on a single income.
- After deducting expenses, his net income was substantial.
revenue
- The company’s revenue grew by 15% this quarter.
- Ticket sales generate a significant portion of their revenue.
- They are exploring new ways to increase revenue.
Which one is more common?
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