Net Passing Income Calculator

What is Net Passing Income?

Net Passing Income is the amount of money you keep after subtracting all your business or personal expenses, taxes, and other deductions from your gross income. It reflects your actual financial gain and is important for budgeting, savings, and financial planning.

Formula to Calculate Net Passing Income

1. Total Deductions:

$\text{Total Deductions}=\text{Total Expenses}+\text{Tax Deductions}+\text{Other Deductions}$

2. Net Passing Income:

$\text{Net Passing Income}=\text{Gross Income}-\text{Total Deductions}$

3. Net Income Percentage:

$\text{Net Income \%}=\left(\frac{\text{Net Passing Income}}{\text{Gross Income}}\right)\times 100$

Example Calculation

Let's assume:

• Gross Income = ₹100,000
• Total Expenses = ₹30,000
• Tax Deductions = ₹10,000
• Other Deductions = ₹5,000

Step 1: Total Deductions

$\text{Total Deductions}=30,000+10,000+5,000=45,000$

Step 2: Net Passing Income

$\text{Net Passing Income}=100,000-45,000=55,000$

Step 3: Net Income Percentage

$\text{Net Income \%}=\left(\frac{55,000}{100,000}\right)\times 100=55\%$​​​​​​​

Final Thoughts

Understanding your Net Passing Income is crucial for proper financial planning. Whether you're self-employed, a salaried professional, or a small business owner, this calculator can help you know what’s really going into your pocket.