Profit maximization is the short run or long run process by which a firm may determine the price, input, and output levels that lead to the greatest profit.

Profit maximization is the capability of a business or company to earn the maximum profit with low cost which is considered as the chief target of any business and also one of the objectives of financial management. According to financial management, profit maximization is the approach or process which increases the profit or Earnings per Share (EPS) of the business. More specifically, profit maximization to optimum levels is the focal point of investment or financing decisions.