The net income formula is the the calculation accountants and other business leaders use to determine net income. The total interest income total interest expense and net interest income can be found on a banks income statement. Net income is also called net profit net earnings or your business bottom line.
It is calculated by taking total sales and subtracting the expenses necessary to generate sales.
Net income formula Financial accounting formulas like net income are essential for determining how your business is doing. Net income can be either positive or negative. Net income is calculated much like pretax income is except that youre also including your taxes in the calculation. Net income NI equals revenues minus expenses interest and taxes.