Accounting
Basic

Net Income

The “bottom line” — total earnings after all expenses, interest and taxes are deducted from revenue.

Formula

NI=Revenue−ExpensesNI = Revenue - Expenses

Variables

NINet income
RevenueTotal income
ExpensesAll costs incl. tax & interest

Example

Revenue $500k − expenses $430k = $70k net income

Did You Know?

A company can post record revenue and still report a net loss if expenses outrun it.

net incomeprofitbottom line