What is Net Income?
Bottom-line profit after all costs and taxes.
How to calculate it
Calculate Net Income as: Total revenue − Total expenses. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
$1M revenue minus $900k total expenses -> $100k net income.
Example 2
$1M revenue minus $900k of total expenses -> $100k net income, a 10% net margin once a one-off restructuring cost is excluded.
Why it matters
Net income is the bottom-line profit after all costs and taxes and is the ultimate measure of profitability. It is the figure that flows to retained earnings and, for public companies, to earnings per share. One-time items can distort a single period, so it should be read alongside operating metrics for the underlying trend.
Benchmark context
Positive and growing net income is the goal; the margin it represents is best benchmarked against industry peers.
Common pitfalls
One-time items can distort the period.
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