Understanding the Difference Between Gross and Net

July 28, 2024

Understanding the Difference Between Gross and Net

Gross vs. Net: Simple Explanation

History

The words “gross” and “net” come from old English. “Gross” means the total amount of something. “Net” means the amount left after taking away some parts.

Use in Sentences

Gross

• The gross amount of apples is 100.
• The company made a gross profit of \$1,000.
• The gross weight of the box is 5 pounds.
• The gross income of the family is \$50,000 a year.
• The gross number of students in the class is 30.

Net

• The net amount of apples is 90 after eating 10.
• The company has a net profit of \$800 after costs.
• The net weight of the box is 4 pounds after removing packing.
• The net income of the family is \$40,000 after taxes.
• The net number of students in the class is 28 after some moved away.

Tricks to Remember

Think of “gross” as the big number and “net” as the smaller number after taking things away.

Summary

Gross is the total amount of something. Net is the amount left after taking away parts. Remember, gross is bigger, and net is smaller.