earngain

Earngain is a neologism used mainly in informal discussions of personal finance to describe the combined amount of income derived from earnings (wages, salaries, commissions) and gains (capital gains from the sale of assets, investment profits). It is not an established term in generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS), and does not appear on standard tax documents; rather, it serves as a shorthand for total gross income from employment and investments.

Usage and interpretation vary by context. In budgeting or tax planning, someone might reference their earngain to estimate potential tax liability or savings opportunities, but earngain should be distinguished from taxable income, ordinary income, and capital gains, which are treated differently for tax and reporting purposes. In formal financial reporting, earnings and gains are reported separately: earnings typically refer to regular operating income or net income from the core business or employment, while gains refer to non-operating profits from asset sales or other investments.

Limitations: because earngain collapses distinct income streams, it can obscure important tax considerations, deductions, credits, and rate differences. Users should rely on official figures for decision making and be aware of jurisdiction-specific rules.

See also: Earnings, Capital gains, Income, Taxable income, Net income.