The Total Income Formula is a crucial business concept that provides an understanding of the financial health of a company. In its most basic sense, the formula defines total income as the sum of all money earned during a period of time minus any expenses incurred during that same period – for example, one year’s total income could be calculated by subtracting annual costs such as rent, payroll, and utility bills from the amount of revenue received over that timeframe. Appreciating this equation can help business owners gain insight into their company’s overall performance and recognize areas where they may need to invest more resources or reassess their strategies in order to maximize profitability.