Gross vs Net - Difference and Comparison

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	Gross	Net
Represents:	Gross represents the whole	Net represents a part of the whole
Meaning:	The term gross refers to the total amount made as a result of some activity. It can refer to things such as total profit or total sales.	Net (or Nett) refers to the amount left over after all deductions are made. Once the nett value is attained, nothing further is subtracted. The net value is not allowed to be made lower.
Used in:	The terms gross is commonly used in the fields of accounting and mathematics & also frequently used in everyday life	The term Net is commonly used in the fields of accounting and mathematics & also frequently used in everyday life
Taxation:	Salaried people now pay income-tax on their gross income as per Income-Tax Act of 1961	Businesses and self-employed persons pay tax on their net income as per Income-Tax Act of 1961

Gross refers to the total and Net refers to the part of the total that really matters.

[edit] Differences in Everyday Usage

In everyday usage, Gross Weight refers to the total weight of the goods + the container and packaging. On the other hand, Net weight refers to only the weight of the goods in question.

[edit] Gross vs. Net in Economics

In economics, gross means before deductions (brutto), e.g. Gross Domestic Product (GDP) refers to the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year). Net Domestic Product (NDP) refers to the Gross Domestic Product (GDP) minus depreciation on a country's Capital (economics) goods. (The NDP is thus, in effect, an estimate of how much the country has to spend to maintain the current GDP.)

[edit] Gross vs. Net in Accounting

[edit] Gross vs Net Income

In accounting, for a P&L (Profit and Loss) statement, Gross profit, or Gross income, or Gross operating profit is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments. Net profit is equal to the gross profit minus overheads minus interest payable plus one off items for a given time period.

In relation to UK Value Added Tax (VAT, Sales Tax) the Net is the amount before tax, the gross is the amount including tax. Note that "net" may also be spelt "nett".