Gross vs. Nett — What's the Difference?
Edited by Tayyaba Rehman — By Maham Liaqat — Updated on April 18, 2024
Gross refers to the total amount before any deductions, while nett (or net) indicates the remaining amount after all deductions are made.
Difference Between Gross and Nett
Table of Contents
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Key Differences
Gross income or revenue is the total amount earned without any reductions for expenses or taxes, whereas nett income represents what remains after all necessary deductions like taxes and operating expenses are subtracted.
In financial contexts, gross weight includes the weight of packaging or containers, while the nett weight is just the weight of the actual product.
For salaries, an employee's gross pay is the full amount earned before any payroll deductions such as taxes and retirement contributions, whereas the nett pay is the amount the employee takes home after all deductions.
In accounting, a gross profit is calculated by deducting the cost of goods sold from total sales revenue, on the other hand, the nett profit also subtracts other operational expenses, interest, and taxes from the gross profit.
When analyzing financial statements, investors look at gross margins to understand a company’s production efficiency, while nett margins give insight into overall profitability after accounting for all aspects of business expenses.
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Comparison Chart
Definition
Total amount before deductions
Amount after all deductions
In terms of salary
Total earnings before taxes and other deductions
Take-home pay after all deductions
In terms of weight
Total weight including container/package
Weight of the product alone
Profit calculation
Revenue minus cost of goods sold
Gross profit minus all other expenses
Importance in business
Indicates revenue generation capacity
Shows actual profitability
Compare with Definitions
Gross
Complete, especially in a bad sense.
His behavior was a gross violation of protocol.
Nett
Free from all charges or deductions.
The net profit is what ultimately matters.
Gross
Explicitly or glaringly obvious.
It was a gross misunderstanding of the rules.
Nett
Remaining after deductions.
The net weight of the coffee is 950 kg.
Gross
Very unpleasant; repulsive.
The movie was criticized for its gross humor.
Nett
(Computing) pertaining to the Internet.
The net generation is very tech-savvy.
Gross
Without deductions; entire.
The company's gross earnings were higher this quarter.
Nett
Clear of any encumbrances or conditions.
The net price includes all taxes.
Gross
Total amount or whole.
The gross weight of the shipment was 1000 kg.
Nett
Final; conclusive.
What was the net result of the negotiations?
Gross
Exclusive of deductions; total
Gross profits.
Nett
Nett also written as Net, is one of the administrative divisions of Pohnpei State, Federated States of Micronesia.
Gross
Unmitigated in any way; utter
Gross incompetence.
Nett
(dated) net.
Nett price; nett weight
Gross
So obvious or conspicuous as to cause or heighten offense
Gross injustice.
Nett
Obsolete form of net
Gross
Brutishly coarse, as in behavior; crude
"It is futile to expect a hungry and squalid population to be anything but violent and gross" (Thomas H. Huxley).
Nett
Catch with a net;
Net a fish
Gross
Disgusting or offensive
Don't you think slugs are gross? He told a gross joke.
Nett
Remaining after all deductions;
Net profit
Gross
Overweight; corpulent
"Sally is fat. She is gross. She must weigh twelve stone and more" (Margaret Drabble).
Gross
On a large scale; not fine or detailed
Gross anatomical similarities.
Gross motor skills.
Gross
Broad; general
The gross necessities of life.
Gross
Pl. gross·es The entire body or amount, as of income, before necessary deductions have been made.
Gross
Pl. gross Abbr. gr. or gro. A group of 144 items; 12 dozen.
Gross
To earn as a total income or profit before deductions
The store grossed $10,000 last month.
Gross
(of behaviour considered to be wrong) Highly or conspicuously offensive.
A gross mistake;
Gross injustice;
Gross negligence; a gross insult
Gross
(of an amount) Excluding any deductions; including all associated amounts.
Gross domestic product; gross income; gross weight
Gross
Seen without a microscope (usually for a tissue or an organ); at a large scale; not detailed.
Gross anatomy
Gross
Causing disgust.
I threw up all over the bed. It was totally gross.
Gross
Lacking refinement in behaviour or manner; offending a standard of morality.
Gross
(of a product) Lacking refinement; not of high quality.
Gross
(of a person) Heavy in proportion to one's height; having a lot of excess flesh.
Gross
Difficult or impossible to see through.
Gross
(archaic) Not sensitive in perception or feeling.
Gross
(obsolete) Easy to perceive.
Gross
Twelve dozen = 144.
Gross
The total nominal earnings or amount, before taxes, expenses, exceptions or similar are deducted. That which remains after all deductions is called net.
Gross
The bulk, the mass, the masses.
Gross
(transitive) To earn money, not including expenses.
The movie grossed three million on the first weekend.
Gross
Great; large; bulky; fat; of huge size; excessively large.
A gross body of horse under the Duke.
Gross
Coarse; rough; not fine or delicate.
Gross
Not easily aroused or excited; not sensitive in perception or feeling; dull; witless.
Tell her of things that no gross ear can hear.
Gross
Expressing, or originating in, animal or sensual appetites; hence, coarse, vulgar, low, obscene, or impure.
The terms which are delicate in one age become gross in the next.
Gross
Disgusting; repulsive; highly offensive; as, a gross remark.
Gross
Thick; dense; not attenuated; as, a gross medium.
Gross
Great; palpable; serious; vagrant; shameful; as, a gross mistake; gross injustice; gross negligence.
Gross
Whole; entire; total; without deduction; as, the gross sum, or gross amount, the gross weight; - opposed to net.
Gross
The main body; the chief part, bulk, or mass.
For the gross of the people, they are considered as a mere herd of cattle.
Gross
The number of twelve dozen; twelve times twelve; as, a gross of bottles; ten gross of pens.
Gross
Twelve dozen
Gross
The entire amount of income before any deductions are made
Gross
Earn before taxes, expenses, etc.
Gross
Before any deductions;
Gross income
Gross
Visible to the naked eye (especially of rocks and anatomical features)
Gross
Of general aspects or broad distinctions;
The gross details of the structure appear reasonable
Gross
Repellently fat;
A bald porcine old man
Gross
Conspicuously and outrageously bad or reprehensible;
A crying shame
An egregious lie
Flagrant violation of human rights
A glaring error
Gross ineptitude
Gross injustice
Rank treachery
Gross
Without qualification; used informally as (often pejorative) intensifiers;
An arrant fool
A complete coward
A consummate fool
A double-dyed villain
Gross negligence
A perfect idiot
Pure folly
What a sodding mess
Stark staring mad
A thoroughgoing villain
Utter nonsense
Gross
Conspicuously and tastelessly indecent;
Coarse language
A crude joke
Crude behavior
An earthy sense of humor
A revoltingly gross expletive
A vulgar gesture
Full of language so vulgar it should have been edited
Common Curiosities
What is included in the gross weight of a product?
The gross weight includes the weight of the product along with its packaging or container.
What does gross mean in terms of salary?
Gross salary is the total earnings of an employee before any deductions like taxes or retirement contributions.
What is meant by net assets in financial statements?
Net assets are the total assets of a company minus its total liabilities.
How is nett profit different from gross profit?
Nett profit is calculated by subtracting all operational expenses, interest, and taxes from the gross profit.
What does the term "net lease" mean in real estate?
A net lease is a type of lease where the tenant pays not only the rent but also some or all of the property expenses, such as taxes, insurance, and maintenance.
What does nett income indicate for an individual?
Nett income is what an individual actually takes home after all deductions such as taxes and social security contributions.
What is the difference between gross margin and net margin?
Gross margin is the difference between revenue and cost of goods sold divided by revenue, while net margin is the nett profit divided by revenue.
Why is understanding the difference between gross and nett important in business?
Knowing the difference helps in accurately assessing the financial health and profitability of a business.
What does gross negligence imply?
Gross negligence is a lack of care in recklessness that demonstrates a blatant disregard for the safety or lives of others.
Can nett weight vary significantly from gross weight?
Yes, especially if the packaging is substantial, the nett weight can be significantly less than the gross weight.
Is gross weight relevant in shipping?
Yes, gross weight is crucial for compliance with shipping regulations and logistics planning.
How do gross misconduct and net misconduct differ?
The term "gross misconduct" is used in legal and employment contexts to describe an action so serious that it justifies immediate dismissal. "Net misconduct" is not a commonly used term.
How can one calculate net salary from gross?
To calculate net salary, subtract all deductions like taxes, health insurance, and retirement contributions from the gross salary.
How does one interpret gross capacity and net capacity?
Gross capacity refers to the total capacity of a facility or machine, while net capacity is the capacity that can actually be used after accounting for necessary downtimes or maintenance.
What is the significance of net sales in business?
Net sales show the actual revenue figures after discounts, returns, and allowances, providing a clear picture of effective sales performance.
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Written by
Maham Liaqat
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
