1. Money
Send to a Friend via Email

Net Income

By

Definition:

Net Income is the amount of profit money a business has after determining total gross business income and deducting all expenses, taxes, depreciation, and interest.

Net income is the same as the "profit" of a business, or its "earnings."

The opposite of net income is a net loss. In this case, the expenses and other reductions are greater than the income of the business.

Also Known As: Profit, revenue, earnings
Examples:
If a business has net annual sales of $150,000 and expenses of $100,000, its net income is $50,000. If a business has net annual sales of $150,000 and expenses of $158,000, its net loss is $8,000.

©2014 About.com. All rights reserved.