Net income is the amount of profit a business accrues after accounting for all expenses, deductions and losses during a fiscal period. To accurately calculate net income, businesses must use an equation known as the Net Income Formula With Tax Rate. This formula takes into account pre-tax income, as well as any applicable state and federal taxes—allowing you to see exactly how much money your business earned (net) at the end of the period. So if you’re looking for an easy way to get a true picture of your company’s profitability, you’ll want to make sure you use the Net Income Formula With Tax Rate.