Definition of net income

revenue less all expenses; also called net profit . Other elements involved in computing net income include extraordinary items (net of tax) and cumulative effect of a change in accounting principle (net of tax).

In general: sum remaining after all expenses have been met or deducted; synonymous with net earnings and with net profit or net loss (depending on whether the figure is positive or negative).
Business: difference between total sales and total costs and expenses. Total costs comprise cost of goods sold including depreciation; total expenses comprise selling, general, and administrative expenses plus income deductions. Net income after taxes is the bottom line. It is out of this figure that dividends are normally paid.
Tax: See gross income; taxable income.

In general: sum remaining after all expenses have been met or deducted; synonymous with net earnings and with net profit or net loss (depending on whether the figure is positive or negative).
For a business: difference between total sales and total costs and expenses. Total costs comprise cost of goods sold including depreciation; total expenses comprise selling, general, and administrative expenses, plus income deductions. Net income is usually specified as to whether it is before income taxes or after income taxes. Net income after taxes is the bottom line referred to in popular vernacular. It is out of this figure that dividends are normally paid. See also Operating Profit (or Loss).
For an individual: gross income less expenses incurred to produce gross income. Those expenses are mostly deductible for tax purposes.

1. in accounting, the amount remaining after all expenses have been met.
   Example:Table 34.

2. in appraisal, same as Net Operating Income.