Nettbalanse

Nettbalanse, or net balance in English, is a financial term that describes the amount remaining after subtracting expenses from revenues for a given period. It is used to assess the financial position of an individual, a business, or an organization and can indicate whether there is a surplus or a deficit.

The calculation is straightforward: nettobalanse = inntekter minus utgifter. In accounting and budgeting, incomes can include sales, fees, and other inflows, while utgifter cover operating costs, wages, and other outlays. Some analyses also adjust for non-operating items, taxes, or financing costs, depending on the purpose and the accounting method (for example accrual vs. cash basis).

Positive nettobalanse indicates a surplus or profit, while a negative nettobalanse indicates a deficit. The concept is widely used in private budgeting to plan savings, in corporate reporting to evaluate profitability, and in public finances to assess the sustainability of budgets. It helps stakeholders understand how efficiently resources are converted into earnings or savings over a period.

In certain sectors, such as the electricity market, nettobalanse can have a broader meaning related to the balance between forecasted and actual production or consumption, which system operators and balance responsible parties monitor and settle.

Related concepts include budget balance, net income, and cash flow. Nettbalanse provides a concise measure of financial performance for a given period and serves as a basis for planning and decision-making.