💰 Net Income Calculator
Calculate net income (profit)
All expenses including COGS, operating expenses, interest, taxes, etc.
How to Use This Calculator
Enter Total Revenue
Input the total revenue - all income from sales, services, or other business activities.
Enter Total Expenses
Enter all expenses - including cost of goods sold, operating expenses, interest, taxes, and any other expenses.
Review Net Income
See the net income (profit or loss) - revenue minus all expenses. Positive net income indicates profit, negative indicates loss. Also see the net profit margin percentage.
Formula
Net Income = Total Revenue - Total Expenses
Net Margin = (Net Income / Revenue) × 100
Example Calculation:
If revenue $1,000,000, total expenses $800,000:
• Net income = $1,000,000 - $800,000 = $200,000
• Net margin = ($200,000 / $1,000,000) × 100 = 20%
About Net Income Calculator
A net income calculator helps you calculate the profit or loss after all expenses are deducted from revenue. Net Income = Total Revenue - Total Expenses. Net income (also called net profit or bottom line) is the final profit available to shareholders after all expenses, including cost of goods sold, operating expenses, interest, and taxes. Net income is a key metric on the income statement and is used to assess profitability, calculate earnings per share, and evaluate financial performance.
When to Use This Calculator
- Profitability Analysis: Calculate net income for profitability analysis
- Financial Statements: Calculate net income for income statements
- Performance Evaluation: Assess financial performance
- Investment Analysis: Analyze company profitability
Understanding Net Income
- Positive Net Income: Profit (revenue exceeds expenses)
- Negative Net Income: Loss (expenses exceed revenue)
- Bottom Line: Final profit after all expenses
- Shareholder Value: Profit available to shareholders
Why Use Our Calculator?
- ✅ Profitability Analysis: Calculate net income accurately
- ✅ Financial Statements: Calculate net income for statements
- ✅ Performance Evaluation: Assess financial performance
- ✅ Investment Analysis: Analyze profitability
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is net income?
Net income (also called net profit or bottom line) is the profit or loss after all expenses are deducted from revenue. Net Income = Total Revenue - Total Expenses. Net income is the final profit available to shareholders after all expenses, including cost of goods sold, operating expenses, interest, and taxes. Net income is a key metric on the income statement and is used to assess profitability, calculate earnings per share, and evaluate financial performance.
How is net income different from gross income and operating income?
Net income includes all expenses, while gross income and operating income include only certain expenses. Gross income = Revenue - COGS (excludes operating expenses, interest, taxes). Operating income = Revenue - COGS - Operating Expenses (excludes interest, taxes). Net income = Revenue - All Expenses (includes COGS, operating expenses, interest, taxes). Net income is the most comprehensive measure of profitability and shows the final profit after all expenses.
What factors affect net income?
Net income is affected by: (1) Revenue - higher revenue increases net income, (2) Cost of goods sold - lower COGS increases net income, (3) Operating expenses - lower operating expenses increase net income, (4) Interest expense - lower interest increases net income, (5) Taxes - lower taxes increase net income, (6) Other income/expenses - non-operating items affect net income. Understanding these factors helps improve profitability.
Why is net income important?
Net income is important because it: (1) Measures profitability - shows final profit after all expenses, (2) Shareholder value - profit available to shareholders, (3) Financial performance - key metric for evaluating performance, (4) Earnings per share - used to calculate EPS, (5) Investment analysis - used by investors to evaluate profitability, (6) Tax basis - used as basis for income taxes. Net income is the bottom line and a key indicator of financial health.