{"id":1162,"date":"2019-07-01T15:08:17","date_gmt":"2019-07-01T15:08:17","guid":{"rendered":"https:\/\/sage-new-clone.local\/en-au\/blog\/?post_type=sage_glossary&#038;p=1162"},"modified":"2025-10-17T19:10:28","modified_gmt":"2025-10-17T11:10:28","slug":"what-is-net-income","status":"publish","type":"sage_glossary","link":"https:\/\/www.sage.com\/en-sg\/blog\/glossary\/what-is-net-income\/","title":{"rendered":"What is net income?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-sg\/blog\/glossary\/\" class=\"entry-header__link\">Glossary definition<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is net income?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is net income?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-sg\/blog\/glossary\/what-is-net-income\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-net-income\">Net income<\/h2>\n\n\n\n<p>Net income is your company\u2019s total <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-is-net-profit\/\">profits<\/a> after deducting all costs of operation. Costs of operations include business expenses such as inventory, insurance, salary payouts, leased or financed space, equipment costs, advertising, miscellaneous expenses\u2014anything that you\u2019ve paid in service of your business. Also included in the costs of operating a business are a depreciation, loss on investments, and taxes.<\/p>\n\n\n\n<p>How to calculate net income:<\/p>\n\n\n\n<p>Net Income = Total Revenue \u2013 (Expenses + Taxes)<\/p>\n\n\n\n<p>The simple net income definition is your company\u2019s net profits or net earnings. Commonly used to determine the profitability of individual sections or a business as a whole, factoring net income is an important evaluative measure for any business.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-476ad9d0-ec82-4a0c-bb25-98dd6821b545\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-sg\/blog\/wp-content\/uploads\/sites\/24\/2019\/06\/GettyImages-626184462-1064x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-sg\/blog\/wp-content\/uploads\/sites\/24\/2019\/06\/GettyImages-626184462-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Net income Net income is your company\u2019s total profits after deducting all costs of operation. Costs of operations include business expenses such as inventory, insurance, salary payouts, leased or financed space, equipment costs, advertising, miscellaneous expenses\u2014anything that you\u2019ve paid in service of your business. Also included in the costs of operating a business are a [&hellip;]<\/p>\n","protected":false},"author":708,"featured_media":0,"template":"","meta":{"_sage_video":false,"footnotes":""},"tags":[23,173,61,202,192],"class_list":["post-1162","sage_glossary","type-sage_glossary","status-publish","hentry","tag-accounting-101","tag-cash-flow","tag-profit-and-loss","tag-small-business","tag-start-up-business"],"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Singapore","distributor_original_site_url":"https:\/\/www.sage.com\/en-sg\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/sage_glossary\/1162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/sage_glossary"}],"about":[{"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/types\/sage_glossary"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/users\/708"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/sage_glossary\/1162\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/media?parent=1162"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/tags?post=1162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}