Calculating personal net income is determining the total amount of money you have left after subtracting all applicable taxes and expenses from your gross income. For example, if you earn $50,000 per year and pay $10,000 in taxes and $15,000 in expenses, your net income would be $25,000.
Knowing how to calculate your net income is important because it helps you understand your financial situation and make informed decisions about budgeting, saving, and investing.