Adjusted Net Income Calculator
Calculate your adjusted net income to understand normalized earnings by removing non-recurring and non-operational items. This calculator provides a clearer picture of ongoing business performance for valuation and investment decisions.
Reported Net Income
from financial statements
Total Addbacks
expenses to add back
Total Deductions
income to subtract
Pre-Tax Adjustments
net adjustments before tax
Tax Effect
tax impact on adjustments
After-Tax Adjustments
net adjustments after tax
Adjusted Net Income
normalized earnings
Adjustment Percentage
change from reported
Profit Margin Improvement
earnings enhancement
Sustainable Earnings
ongoing business performance
Restructuring Costs
addback
Legal Settlements
addback
Asset Impairments
addback
Stock Compensation
addback
One-Time Expenses
addback
Extraordinary Gains
deduction
Extraordinary Losses
addback
Non-Operational Income
deduction
Owner Compensation
addback
Rent Adjustment
addback
Depreciation Adjustment
addback
Amortization Adjustment
addback
Other Adjustments
addback
Results calculated based on your inputs
About Adjusted Net Income Calculator
The Adjusted Net Income Calculator is a sophisticated financial tool that normalizes net earnings by adjusting for items that don't reflect ongoing business operations. This calculation removes non-recurring expenses, one-time charges, non-operational income, and other items to provide a more accurate picture of sustainable business profitability and true earning power.
Understanding your adjusted net income is crucial for accurate business valuation, investment analysis, and financial planning. By removing items such as restructuring costs, legal settlements, asset impairments, extraordinary gains or losses, and other non-operational factors, adjusted net income provides a cleaner view of core business profitability. This metric is particularly important for investors, lenders, and business owners who need to assess the true earning power of a business without the noise of one-time events or accounting anomalies.
This calculator is essential for business owners, financial analysts, investment professionals, and valuation experts who need to determine normalized earnings, assess business performance, and make informed investment or lending decisions. By analyzing both reported and adjusted net income, you can develop a comprehensive understanding of your business's true financial performance and make strategic decisions based on sustainable earnings rather than one-time events.