Learn what net income means for businesses and individuals, how it's calculated, and why it's a crucial financial metric.

To calculate net income, start with total revenue, subtract the cost of goods sold to find gross profit, and then deduct operating expenses, interest, and taxes.

With some additional information, it's entirely possible to calculate net income from assets, liabilities, and equity reported on a balance sheet. Here's how to do it under three circumstances.

How To Calculate Net Income Based on the definition of “net income,” you calculate it by looking at your total revenue and subtracting any and all expenses. Gross profit takes your total ...

It's as easy as adding and subtracting to calculate a missing account on an income statement.

In Florida, to calculate child support amounts, the state uses net income to calculate the parent’s total obligation.