Net income is calculated as

Net income is basically calculated as what is left with the overall revenue including the capital - if we are talking about business. So, after the capital and expenses were subtracted from the overall revenue, that is what net income is. For example, you are employed in a private company and your monthly fixed income is $3000 then your salary was taken $250 for the health care services, life/health insurance, and other employment-related fees, so your net income is $2750.

Total Revenue - Total Expenses = Net Income