Residual income is the money that continues to flow after an initial investment of time and resources has been completed. Examples of residual income include artist royalties, rental income, interest income, and dividend payments.

The term residual income is used in other contexts:

• In personal finance, residual income can refer to an individual's discretionary income, or the total amount of money left over after paying all personal debts and obligations.
• In corporate finance, residual income is a measurement of corporate performance that reflects the total income generated after paying all relevant costs of capital.