This question is about income vs revenue.

Can income be higher than revenue?

By Zippia Team - Dec. 7, 2022

No, income cannot be higher than revenue. Because income is calculated by subtracting expenses from revenue, it can't be higher than revenue. In fact, it doesn't even have to be a positive number since a company's expenses can outweigh its revenue.

However, that being said, sometimes the word "income" is used to refer to all of the money that enters a company, including revenue, interest from investments, and income from subsidiaries. In this case, income can be higher than revenue - and usually should be.

To differentiate between the two types of income, the first type derived from revenue and expenses is called net income, while the second type is simply called income or total income.

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