Definition: Net income (NI), also called net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses. It is a useful number for investors to assess how much revenue exceeds the expenses of an organization. This number appears on a company's income statement and is also an indicator of a company's profitability.

In Plain English: Net income is the profit (or loss) of the company. It is the final line item on the income statement. The amount of money earned (or burned) after all expenses have been deducted from revenue.

Example: If your EBT was $100 and your taxes were $27, your net income would be $100-$27 = $73.

Net Income displays if the company is profitable for the specific time period.