Calculating Net Income Formula is a process of determining the financial health of a business. It’s used to measure the income generated by the company over a specified period, less any expenses incurred during that time. The formula for calculating net income is simple: Total Revenue – Total Expenses = Net Income. This is an important figure as it provides a glimpse into the inner workings of the business and helps stakeholders decide how much money they can expect to receive as a return on their investment. By understanding and regularly monitoring your net income formula, you can better predict how profitable your business will be over time.