net income

noun

1. the excess of revenues and gains of a business over expenses and losses during a given period of time.

Word History and Origins

Origin of net income¹

First recorded in 1760–70

Example Sentences

Internal NBA records obtained by ESPN in 2017 showed that the league’s clubs were averaging almost $18 million in net income that season.

From ProPublica

In the other years, we earned no net income and, as a result, did not pay income tax.

From ProPublica

Then again, when your company’s net income has increased by a factor of 36 over the past five years, you can afford a few mistakes.

From Washington Post

By “make money,” we don’t mean traditional net income on a GAAP — generally accepted accounting principles — basis.

From TechCrunch

During the June 30 quarter, the company saw positive net income of $23 million off revenues of $675 million.

From TechCrunch

Net income over that time frame rose 24 percent to $109.9 million.

From The Daily Beast

In the fiscal year that ended in July, Molex had sales of $3.6 billion and net income of $243 million.

From The Daily Beast

That pushed net income down to $1.164 billion, a decline of 66 percent in one year.

From The Daily Beast

After paying $149 million in income taxes, it was left with net income of $219 million.

From The Daily Beast

According to Chafets, Ailes donates some 10 percent of his net income to charities.

From The Daily Beast

This effort to discover and record the net income from land was a failure.

From Project Gutenberg

The schools began to improve at once, and the net income was never again as small as under the carpet-bag rgime.

From Project Gutenberg

Speaking broadly, the former consist in securing the largest net income, the latter in securing the largest gross product.

From Project Gutenberg

This must be done each year until the net income from the farm is greater than the interest account.

From Project Gutenberg

Suppose there was only a profit of three cents a gallon on that, it would have meant net income of $707.10.

From Project Gutenberg

More About Net Income

What is net income?

Net income is the amount of revenue remaining after all expenses, taxes, and other costs are paid. In comparison, gross income is the amount of revenue before any costs are paid.

Net income is used in relation to both an individual’s earnings and a business’s earnings. 

As an individual, your income is the amount of money you’re paid for work you do, such as from an employee position or from projects you complete as a freelancer. It can also be money you earn in other ways, such as with renting an apartment or investing in the stock market. Your gross income is the total amount you earn before taxes, expenses, and other costs are paid. Your net income is the amount you receive after paying those costs. If you work an employee position, for example, your net income is the amount of money you receive each pay period, after taxes, retirement savings, health insurance, and other costs are paid.

A business’s income usually comes from the sale of goods or services. As with individuals, a business’s gross income is the total amount earned before any costs are paid. Its net income is the revenue remaining after the costs for materials and labor, taxes, and other expenses are paid. For example, a bookstore would earn income from the sale of books and other items. Its costs would include the books it sells, employee wages, rent for the store space, bags to put sold books in, and so on. Its net income is its gross income minus all its costs.

Example: Sandy’s net income was less than they expected because their health insurance cost was so high.

Where does net income come from?

The first records of the term net income come from around the 1760s. It combines the terms net, meaning “remaining after deductions,” and income, meaning “revenue received for goods and services.”

Did you know ... ?

What are some synonyms for net income?

• take-home pay
• net earnings
• net wages
• net pay

What are some words that share a root or word element with net income? 

• net profit
• net present value
• gross income
• income distribution
• income account

What are some words that often get used in discussing net income?

• business
• expenses
• paycheck
• sales
• taxes

What are some words net income may be commonly confused with?

• gross income

How is net income used in real life?

Net income is almost always used in reference to an individual’s or business’s earnings after expenses, taxes, and other costs are deducted.

Since its IPO in 1997, Amazon has made $30 billion in cumulative net income.

Apple has made $36 billion in net income in its last 2 quarters.$AMZN $AAPL

— Charlie Bilello (@charliebilello) January 30, 2020

African Development Bank's net income continues to grow solidly. We moved from $492.7 million in 2015, when I took over, to $556.6 million in 2016 and $855 million in 2017, an increase of almost 54% over 2016. And 73% increase over where we were 2015. Our future looks brighter!

— Akinwumi A. Adesina (@akin_adesina) February 18, 2018

– Create a cash reserve
– Save 20% net income every month
– Reduce/eliminate debt on liabilities
– Study financial literacy
– Use spare time to learn new skills
– Learn to say “NO” & not feel guilty
– Do more of what makes you happy
– Intake less sugar
– Sleep more

— Reece Wabara (@ReeceWabara) December 24, 2019

 

 

Try using net income!

Is net income used correctly in the following sentence?

“Before Phil took the new job, he calculated what his net income before taxes would be.”