net income

  

Definition

The total revenue in an accounting period minus all expenses during the same period. If income taxes and interest are not deducted, it is called operating profit (or Loss, as the case may be). Also called earnings, net earnings, or net profit.

Use net income in a sentence

  • You receive a paycheck and then you use the money from your paycheck to buy food and clothes, to pay bills and for other necessities and then if you have any money left over, that is your net income.

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  • When Richard subtracted his business expenses from his gross income, his net income was barely enough to cover his living expenses, so to make his profit larger he decided to cut costs by discontinuing overseas shipping of his product.

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  • His net income was much lower than he thought it would be due to the tax hike and him entering a new tax bracket.

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