Net income is the profit that a business earns after accounting for all of its expenses. It’s essentially a measure of how much money a company has left over to invest back into the business or distribute as dividends to shareholders. The net income calculation essentially helps investors and analysts understand if a business is truly making money, or just breaking even. If gross profit exceeds total expenses, then net income will result; this means that all of the costs associated with running the business, such as payroll, rent, materials and inventory have been taken into account, and any remaining profits are yours to keep. Bottom line? You can have big dreams and lofty goals, but success only comes when your profits outweigh your costs.