How do you calculate net income?

So put another way, the net income formula is: Gross Income – Expenses = Net Income Or, if you really want to simplify things, you can express the net income formula as: Total Revenues – Total Expenses = Net Income Net income can be positive or negative. When your company has more revenues than expenses, you have a positive net income.

What if your Expenses are more than your revenues?

If your total expenses are more than your revenues, you have a negative net income, also known as a net loss. Using the formula above, you can find your company’s net income for any given period: annual, quarterly, or monthly—whichever timeframe works for your business.

What is net income in accounting?

Net income is the amount of accounting profit a company has left over after paying off all its expenses. It is found by taking sales revenue and subtracting COGS, SG&A, depreciation and amortization, interest expense, taxes, and any other expenses. Net income is the last line item on the income statement proper.