Net Income Calculator
The net income calculator finds the bottom line of the income statement: the profit that remains after every expense is taken out of revenue. The method is the most fundamental relationship in accounting, net income equals total revenue minus total expenses. Total expenses sweep in everything that reduces profit during the period: the cost of goods sold, operating expenses such as wages and rent, depreciation and amortisation, interest on debt, and income tax. A positive result is a profit and a negative result is a net loss. Net income differs from operating income, which stops before interest and tax, and it differs from cash flow, because it includes non-cash charges like depreciation and is shaped by accruals. It is the figure that feeds earnings per share and flows into retained earnings or dividends. Enter your own total revenue and total expenses to measure the bottom line, work out a net margin, or check the final line of an income statement. Every figure here is computed deterministically from the formula shown in full below, with a worked example that reconciles exactly to the calculator so you can follow each step and trust the result rather than relying on an estimate of the bottom line.
Net income equals total revenue minus total expenses: net income = revenue - total expenses. With revenue of $1,000,000.00 and total expenses of $850,000.00, net income is $150,000.00, the profit after everything.
Net income formula
Net income = R - E
R = total revenue for the period
E = total expenses (COGS, operating, interest and income tax)
Subtracting all expenses from revenue gives the net profit, or net loss if expenses exceed revenue. This is the final line of the income statement, before any distribution to owners.
Worked example
A business earns 1,000,000 dollars in revenue and incurs 850,000 dollars in total expenses.
- Total revenue = 1,000,000
- Total expenses = 850,000
- Net income = 1,000,000 - 850,000 = 150,000
Net income is 150,000 dollars. These are the calculator's default inputs, so the result above matches the widget exactly.
Net income at different expense levels
Net income for revenue of 1,000,000 dollars at a range of total expenses.
| Revenue | Total expenses | Net income |
|---|---|---|
| 1,000,000 | 800,000 | 200,000.00 |
| 1,000,000 | 850,000 | 150,000.00 |
| 1,000,000 | 950,000 | 50,000.00 |
Income statement basics: US Securities and Exchange Commission, Investor.gov.
Net income calculator: frequently asked questions
What is net income?
Net income is the profit left after every expense is subtracted from revenue, including cost of goods sold, operating expenses, interest and taxes. It is the bottom line of the income statement and the figure used to calculate earnings per share. A positive net income is a profit; a negative net income is a net loss.
How do I calculate net income?
Subtract total expenses from total revenue. Total expenses include cost of goods sold, operating expenses, interest and income tax. If revenue is 1,000,000 dollars and total expenses are 850,000 dollars, net income is 150,000 dollars. The result is the profit that flows through to retained earnings or is paid out as dividends.
How is net income different from operating income?
Operating income is profit from core operations before interest and taxes, while net income is profit after every expense, including interest and taxes. Operating income sits higher on the income statement; net income is the final bottom line. A company can have positive operating income but negative net income if interest and tax are large.
What expenses are included?
Net income subtracts all expenses: the cost of goods sold, operating expenses such as wages and rent, depreciation and amortisation, interest on debt, and income tax. Anything that reduces profit during the period belongs in total expenses. Non-cash charges like depreciation are included even though no cash leaves the business.
Is net income the same as cash flow?
No. Net income is an accounting profit that includes non-cash items such as depreciation and is affected by accruals, so it can differ from the cash the business actually generated. The cash flow statement reconciles net income to operating cash flow. A profitable company can still be short of cash, and vice versa.
Official sources
- Income statements, earnings and investing basics: US Securities and Exchange Commission, Investor.gov. As at 25 June 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. This is general information, not financial, tax, legal or investment advice.