Finance and accounting
Net income
Profit after every cost, including interest and tax.
Last reviewedWhat 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?
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.