Net Income

Operating profit after tax. Net income (or net profit) is calculated as the sum of project revenues minus the sum of project expenses.

MetricAmount
Project Revenues (R)
Project Expenses (E)
Net Income (NP)

Formula

NP = Σ R - Σ E

Where:

  • NP = Net Profit (or Net Income)
  • R = Project Revenues
  • E = Project Expenses

Expenses Include

All costs needed to generate revenue:

  • Labor
  • Material
  • Services
  • Inventory
  • Supplies
  • Depreciation
  • Employee salaries
  • Renting buildings
  • Insurance coverage
  • Income taxes
Net Income | MEPKit Engineering Tools | MEPKit