Locate total revenue (or total income) for the period
Locate total expenses for the same period
Subtract total expenses from total revenue to get net income
Use the formula: Net Income = Total Revenue − Total Expenses
If using a statement format: Net Income = (Revenue − Expenses) + Other Income − Other Expenses − Taxes − Interest (if applicable)
If you have income tax and interest separately: start with income before tax, subtract taxes, and adjust for interest as required by the reporting standard
Verify by checking the bottom line of the income statement labeled “Net income” or “Net earnings”
Confirm the period matches across all figures (same dates/quarter/year)