nettoincome

Netto income is the amount left after all deductions from gross income. In English usage, the standard term is net income; however, you may encounter variants such as netto income or the concatenated form nettoincome in some datasets or nonstandard texts. For individuals, it refers to take-home pay after taxes and other deductions; for businesses, it refers to net profit after expenses and taxes. The exact components and definitions vary by jurisdiction and context.

Individuals: Net income equals gross wages plus other earnings minus income tax, social security or pension contributions, health insurance, retirement plans, and any voluntary deductions. Some deductions are pre-tax, reducing taxable income; others are after-tax. Net income is the amount individuals can actually spend or save in a pay period or month.

Businesses: Net income (net profit) equals total revenue minus the cost of goods sold, operating expenses, depreciation and amortization, interest, taxes, and other expenses. It is a key measure of profitability and is reported on financial statements as net income or net earnings.

Example: A monthly gross salary of 5,000 with taxes and other deductions totaling 1,200 yields a net income of 3,800. In corporate finance, a company with revenue of 1,000,000, COGS 400,000, operating expenses 350,000, depreciation 50,000, interest 20,000, and taxes 60,000 reports a net income of 120,000.