You may already know that net income is the amount of money left after all expenses and taxes are deducted from total revenue. For individuals, it refers to take-home pay after deductions such as taxes, health insurance, and retirement contributions. For businesses, net income represents the company’s profit after operating expenses, interest, taxes, and other costs have been subtracted from total revenue. A key measure of financial health, net income shows the actual profitability and can help determine future investments or savings.