Net Profit is a firm’s total earnings. Net profit is calculated by taking revenues and adjusting for the price tag on doing business, depreciation, interest, taxes along with expenses. This number is located on a firm’s income statement and it is an important way of measuring how profitable the organization is over time. The measure can be used to estimate earnings per talk about. Net profit or net earnings is a measure of the profitability of an venture after accounting for all those costs.