What Is Net Income?
Net income is the amount left after all taxes and deductions are subtracted from gross income. For an individual it is take-home pay; for a business it is profit after all expenses, interest, and taxes. Personal budgets are usually built on net income because it is the money actually available to spend.
For Individuals
Net pay = gross pay − income tax − payroll taxes − pre-tax and post-tax deductions.
For Businesses
Net income = revenue − cost of goods sold − operating expenses − interest − taxes. It is often called the bottom line.
🧮 Calculate It Yourself
Put Net Income into practice with these free calculators — no sign-up, nothing stored.
🔗 Related Terms
More Personal Finance Terms
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.