🧾 Net Income Calculator
Calculate net income, the bottom-line profit left after subtracting all costs, interest, and taxes from total revenue.
How Net Income Is Calculated
Net income, often called the "bottom line," is the profit a business has left after subtracting every cost of doing business from its total revenue. It’s one of the most widely used measures of profitability.
This calculator works through the standard income statement waterfall: Net Income = Revenue – COGS – Operating Expenses – Interest Expense – Taxes. Along the way it also shows gross profit (revenue minus COGS), operating income (gross profit minus operating expenses), and pre-tax income (operating income minus interest).
- Net Profit Margin expresses net income as a percentage of revenue, letting you compare profitability across companies of different sizes.
- A negative net income means the business posted a net loss for the period.
Note: This calculator uses a simplified single-step income statement structure for general financial education and planning; real financial statements may include additional line items like other income, minority interest, or extraordinary items.