In 15 Seconds
- Spending more money than you earn in a business or deal.
- The direct opposite of the phrase 'make a profit'.
- Used for companies, investments, or selling personal items for less.
Meaning
This phrase describes a situation where you spend more money than you earn. It means your business or project is losing money instead of making a profit.
Key Examples
3 of 6Discussing a failed business venture
The restaurant had to close because it was making a loss every month.
The restaurant had to close because it was making a loss every month.
Selling a concert ticket last minute
I had to sell my tickets for $20 less, so I made a loss on them.
I had to sell my tickets for $20 less, so I made a loss on them.
A formal company annual report
The tech giant reported that it made a loss of $2 million in Q3.
The tech giant reported that it made a loss of $2 million in Q3.
Cultural Background
In the US, 'making a loss' is often discussed openly in the context of 'tax loss harvesting,' where investors intentionally sell losing stocks to reduce their tax bill. British business culture often uses 'trading loss' specifically for the operational side of a business, and owners might use 'understatement' when describing it. Making a loss is often associated with 'Akaji' (red ink). There is a strong cultural emphasis on corporate responsibility, and a loss might lead to executive pay cuts. German 'Mittelstand' (small to medium companies) are known for being very risk-averse. Making a loss is taken very seriously and usually leads to immediate cost-cutting measures.
Never use 'do'
This is the most common mistake. Even if your native language uses 'do', English always uses 'make'.
Use adjectives
To sound more natural, use adjectives like 'heavy loss' or 'slight loss' to specify the amount.
In 15 Seconds
- Spending more money than you earn in a business or deal.
- The direct opposite of the phrase 'make a profit'.
- Used for companies, investments, or selling personal items for less.
What It Means
Make a loss is all about the math of life. It happens when your costs are higher than your income. Imagine spending $10 to make lemonade but only selling $5 worth. You didn't just 'lose money' in a random way. You operated your business at a disadvantage. It is the opposite of make a profit.
How To Use It
You use this phrase like a standard verb. You can say a company made a loss last year. You can also say you are making a loss right now. It usually follows a subject like a business, a person, or a specific deal. Use it when talking about investments, side hustles, or big corporations. It sounds professional but is simple enough for daily chat.
When To Use It
Use it during a meeting to explain why a project failed. Use it when talking to a friend about your struggling Etsy shop. It fits perfectly in financial news reports. You can even use it for personal sales. If you sell your old car for less than you paid, you made a loss on that sale.
When NOT To Use It
Don't use it for losing physical items. If you drop your wallet, you didn't make a loss. You just lost your wallet. Also, avoid it for emotional situations. You don't make a loss when a sports team loses a game. Use it strictly for financial or resource-based calculations. It is about the balance sheet, not your feelings.
Cultural Background
In Western business culture, making a loss isn't always a total disaster. Many tech startups make a loss for years while they grow. Amazon and Uber did this for a long time! However, in personal life, it usually implies a mistake or bad luck. It reflects the high value placed on 'the bottom line' in English-speaking societies.
Common Variations
You will often hear run at a loss. This means the business continues to operate while losing money. You might also hear take a loss. This is more active. It means you chose to sell something for a lower price to get rid of it. Post a loss is the formal version used in news headlines.
Usage Notes
The phrase is highly versatile and works in both casual and formal settings. Remember that 'make' is the specific verb that creates the strongest natural pairing (collocation) with 'loss'.
Never use 'do'
This is the most common mistake. Even if your native language uses 'do', English always uses 'make'.
Use adjectives
To sound more natural, use adjectives like 'heavy loss' or 'slight loss' to specify the amount.
Context matters
In a job interview, talking about how you 'managed a loss' sounds better than just saying you 'lost money'.
Examples
6The restaurant had to close because it was making a loss every month.
The restaurant had to close because it was making a loss every month.
Describes a continuous state of losing money.
I had to sell my tickets for $20 less, so I made a loss on them.
I had to sell my tickets for $20 less, so I made a loss on them.
Used for a specific transaction.
The tech giant reported that it made a loss of $2 million in Q3.
The tech giant reported that it made a loss of $2 million in Q3.
Standard business reporting language.
Sold my crypto today... definitely made a loss on that one! 📉
Sold my crypto today... definitely made a loss on that one!
Informal use regarding personal finances.
My knitting hobby is great, but since I buy so much yarn, I'm making a loss!
My knitting hobby is great, but since I buy so much yarn, I'm making a loss!
Using business terms for a funny personal situation.
It breaks my heart that the farm is making a loss after three generations.
It breaks my heart that the farm is making a loss after three generations.
Shows the serious consequences of financial failure.
Test Yourself
Choose the correct verb to complete the sentence.
The startup ______ a loss of $2 million in its first year of operation.
In English, the standard collocation is 'make a loss'.
Fill in the missing words (usually two words).
I bought the stocks at 100 and sold them at 80, so I ________ ________ ________.
The speaker sold for less than the purchase price, resulting in a loss.
Match the situation to the most appropriate phrase.
A company's expenses were $50,000 and its income was $40,000.
Since expenses are higher than income, it is a loss.
Complete the dialogue with the correct form of 'make a loss'.
A: Is the new branch doing well? B: Not really. It ________ ________ ________ since it opened last summer.
The present perfect continuous is used here to show an ongoing state from the past to now.
🎉 Score: /4
Visual Learning Aids
Profit vs. Loss
Common Adjectives
Size
- • heavy loss
- • slight loss
- • substantial loss
Time
- • annual loss
- • quarterly loss
- • consecutive losses
Practice Bank
4 exercisesThe startup ______ a loss of $2 million in its first year of operation.
In English, the standard collocation is 'make a loss'.
I bought the stocks at 100 and sold them at 80, so I ________ ________ ________.
The speaker sold for less than the purchase price, resulting in a loss.
A company's expenses were $50,000 and its income was $40,000.
Since expenses are higher than income, it is a loss.
A: Is the new branch doing well? B: Not really. It ________ ________ ________ since it opened last summer.
The present perfect continuous is used here to show an ongoing state from the past to now.
🎉 Score: /4
Frequently Asked Questions
10 questionsYes, if you are talking about multiple years or multiple departments. E.g., 'The company reported losses in 2020 and 2021.'
Mostly, yes. You can use it for personal investments (like stocks or a house), but not for losing your wallet.
'Make a loss' is more formal and specific to a business period or transaction. 'Lose money' is general and can be used for any situation.
Yes, 'take a loss' is a common alternative, often meaning you 'accept' the loss. E.g., 'I decided to take a loss and sell the car.'
In the singular, you almost always need the article 'a'.
Use 'incurred a net loss' or 'sustained a financial deficit.'
Only in the context of their business or investments, not their personal life or character.
Yes, though Americans also frequently use 'take a loss' or 'post a loss.'
This is when your investment value drops, but you haven't sold it yet. You haven't 'made a loss' until you sell.
Only figuratively, and it's quite rare. Stick to money for the most natural usage.
Related Phrases
make a profit
contrastTo earn more money than you spend.
break even
similarTo have income equal to expenses.
operate at a loss
specialized formTo continue business while losing money.
in the red
similarTo be in debt or losing money.
cut one's losses
builds onTo stop an activity that is losing money.
