Quick Definition

Net Income (NI) is the total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Formula

Examples

• 1A company with $500,000 in revenue and $300,000 in total expenses (including taxes and costs) has a net income of $200,000.
• 2An individual freelancer calculates their net income by deducting business expenses and taxes from their gross income.
• 3A retail store reports a net income increase after reducing operational costs and increasing sales during the holiday season.

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