A surplus describes the amount of an asset or resource that exceeds the portion that's actively utilized. A surplus can refer to a host of different items, including income, profits, capital, and goods.

A surplus defines the sum of an asset or resource over the portion that is actively used. It may refer to a host of different things, such as sales, income, resources, and products. It defines the items of inventories that remain unused, unbought, or on store shelves.

Definition: Surplus is when a company has more resources or assets than it can use in production. In other words, it’s when a business’ assets exceed the useful demand for them. This concept often refers to excess production capacity, but it is also used in the budgeting process when income exceeds expenses.

In simple economic terms, when supply exceeds demand, there is a surplus. It is the opposite of a deficit or shortage.

A surplus is the residual amount of resources remaining after a period of usage. In the manufacturing area, a surplus refers to the excess amount of goods that were produced but could not be sold; in this case, a surplus may be bad, since the extra goods tie up working capital and may need to be written off if they become obsolete or spoil.