Net Income Definition

Net income is a financial metric that measures the amount of money a company or individual has earned during a given period of time, after accounting for all expenses. This figure represents the bottom line on a company’s income statement and is also known as ‘net profit’ or ‘net earnings.’

To calculate net income, you simply take a company’s total revenue and subtract all of its expenses for the same period. This includes things like cost of goods sold, operating expenses, interest expense, taxes, and any other one-time items.