net is profit, gross is before costs deducted.

*

Gross Net

Meaning Gross refers to the total amount before anything is deducted. Many important accounting statistics use this method, such as gross earnings and gross profit. Net refers to the amount remaining after certain adjustments have been made for debts, deductions or expenses.

Gross vs Net Income Gross income is the pre-tax net sales minus cost of sales. Also called Gross Profit. Net income is what remains after subtracting all the costs (namely, business, depreciation, interest, and taxes) from a company's revenues. It is sometimes called the bottom line. Also called earnings or net profit.

Gross vs Net Margin Gross margin is gross income divided by net sales, expressed as a percentage. It reveals how much a company earns taking into consideration the costs that it incurs for producing its products and/or services. It is a good indication of how profitable a company is at the most fundamental level. Companies with higher gross margins will have more money left over to spend on other business operations, such as research and development or marketing. Net margin is net profit divided by net revenues, often expressed as a percentage. This number is an indication of how effective a company is at cost control. The higher the net margin is, the more effective the company is at converting revenue into actual profit. The net margin is a good way of comparing companies in the same industry, since such companies are generally subject to similar business conditions. However, the net margins are also a good way to compare companies in different industries in order to gauge which industries are relatively more profitable. Also called net profit margin.