Net Income

Net Income is the amount of money a company has left over after paying all its bills. It's calculated by taking total revenue (money coming in), then subtracting all expenses—like salaries, rent, materials, taxes, and interest on debt. Think of it like your paycheck: it's not what you earn before taxes and deductions, but what actually lands in your account. You'll see Net Income on a company's income statement, and it matters because it shows whether a business is actually profitable or just bringing in sales. For example, TechCorp might have $100 million in revenue but $95 million in costs, leaving $5 million in net income—that's the real profit shareholders care about.