Finance and accounting
Net income
Profit after every cost, including interest and tax.
Facts checked against sources onWhat does Net income mean?
Net income (net profit) is what is left after all costs, including interest and taxes. It is the bottom line of the income statement. Net margin is net income divided by revenue.
Where does it come up in case interview prep?
- The profit and loss statement, line by lineLesson in Business basics for non-business learners
- The cash flow statement, and why profit is not cashLesson in Reading a business through its numbers: the three statements, cash and value
- Profit and lossLesson
- Financial services P&L: banks and insurersLesson
Related terms
- EBIT and operating profitProfit from operations, before interest and tax.
- Income statement (P&L)Revenue, costs and profit over a period.
- ProfitThe money left over after costs. Revenue minus cost.
- RevenueMoney earned from sales, before costs.
- CostWhat it takes to make and sell the product in a period.
- Fixed costA cost that stays the same when volume changes, within a normal range.
- Variable costA cost that rises and falls with how much you make.
- Semi-variable costA cost with a fixed part and a part that moves with volume.
Learn it in context
See Net income at work in a lesson from Business basics for non-business learners, with checks as you go.
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