Term of the Day net income

Term of the Day

net income

  1. In business, what remains after subtracting all the costs (namely, business,depreciationinterest, and taxes) from a company’s revenues. Net income is sometimes called the bottom linealso called earnings or net profit.
  2. For an individual, gross income minus taxesallowances, and deductions. An individual’s net income is used to determine how much income tax is owed.

    For more information, see Gross vs Net.

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Usage Example
After the accounting department subtracted all necessary taxes and deductions from my paycheck, I received my net income for that pay cycle.