Residual Income

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Residual Income.

Income that one continues to receive post-completion of income-producing work.  This is found in royalties, rental or real estate income, and investment accounts.  Residual income is also referred to as “passive income” for an individual or company.  For corporations, residual income refers to the amount of leftover profit after paying all the costs of capital used to generate revenue.  In the realm of personal finance, residual income is known as disposable income.  Because of this, residual income has become an essential component of securing a loan.