Calculating net income is a vital part of any business. It’s the final step in the accounting equation, which helps to measure the company’s profitability for any given period of time. To calculate the net income, you’ll need to subtract all expenses — like operating costs, taxes, and depreciation — from total revenue. This number represents the actual amount of money that the business has left over after all other obligations have been fulfilled. With a good understanding of how to calculate a company’s net income, you can make better business decisions and track performance over time.