Net Income

What is Net Income?

Net income is the company’s total profit after all expenses, taxes, interest, and other costs have been subtracted from total revenue. It is also known as the bottom line because it appears at the bottom of the income statement. Net income shows how much the company earned during a specific period and is a key indicator of financial performance.

Formula:

Net income = Total revenue – Total expenses

If net income is negative, it’s called a net loss.