Residual Income. Whether you're in college or well into your career, here's how to earn recurring income. Residual income valuation (RIV; also, residual income model and residual income method, RIM) is an approach to equity valuation that formally accounts for the cost of equity capital.
Residual income valuation (RIV; also, residual income model and residual income method, RIM) is an approach to equity valuation that formally accounts for the cost of equity capital.
When looking at corporate finance, residual income is any excess that an investment earns relative to the opportunity.
Personal residual income, often called discretionary income, is the amount of income or salary left over after debt payments, like car loans and mortgages, have been paid each month. Residual income is calculated by the following method: RI = Operating Income - (Operating Assets x Target Rate of Return). Residual income is income that a person continues to make after the work he has put into a project has been completed.




