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In the context of finance and accounting, gross refers to the total amount before any deductions, while net refers to the final amount that remains after deductions have been made.

Of course, gross and net are common words with many other meanings, but these senses of gross and net are used in the context of measuring something (especially money) that has been accumulated—profit, income, earnings, gains, etc.

The amount described or referred to as gross is everything that has been taken in, not accounting for things like debts, deductions, and expenses. The amount described or referred to as net is how much you have left after you’ve subtracted anything that doesn’t count toward profit, like debts and expenses.

In other words, net is basically gross minus whatever you owe or have spent. For this reason, net is always lower than gross.

For example, let’s say you decide to sell cupcakes at a bake sale. You spend $15 on ingredients, and you have to rent a table for $5, which equals $20 in expenses. Good news, you make $50 in cupcake sales. Your gross is $50. Minus the $20 in expenses, your net is $30. You could say you grossed $50 and netted $30.

To remember the difference, remember that a net sifts whatever goes into it so that only some remains.

Here’s an example of gross and net used correctly in the same sentence.

Example: For this quarter, gross income was $2 million, but $1.25 million in expenses and outstanding debts resulted in a net of only $750,000.

Want to learn more? Read the full breakdown of the difference between gross and net.

Should gross or net be used in the following sentence?

I expect to _____ $1,000, after expenses.