difference between gross and net

Difference between gross and net is some what tricky, both are  related to many field from salary to income to weight. These are two terms which are closely related and more of the time puzzles us .Lets discuss them and clear our understanding.


Gross:-
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. IT is also refer to total quantity or weight of a product.
Net:-
Net  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.
Net weight is also always less then gross weight.

Difference between Gross and net in different field are given below:-

Difference between gross  and net salary(pay):-
1)Gross Pay  is the headline wage rate.
2)Net Pay  will be your take home pay after income tax and national insurance contributions have been deducted. Other deductions could include union subs and professional indemnity.

Difference between gross and net income(for company):-
1)The total income before business and tax deductions are accounted for  in a company. It can also be termed as ,a company's revenue minus cost of goods sold. Also called "gross margin" and "gross profit".
2)Total revenue in an accounting period minus all expenses during the same period. If income taxes are not deducted, it is called operating profit (or Loss, as the case may be). Also called earnings, net earnings, or net profit.
Difference Between Gross Interest Rates and Net Interest Rates:-
1)Gross interest rate is the headline interest advertised by a bank.
2)Net interest rate is the effective interest rate after tax is deducted from the gross rate. It is the rate that will be credited into your account.TDS(Tax deducted at source) is now a days applicable around the world.

Difference Between Gross and  Net in a nation's economics
1)Gross means before deductions , 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).
2)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.)

Differences between Gross and Net (weight or quantity) in products:-

1)Gross Weight(or quantity) refers to the total weight of the goods + the container and packaging.
2) Net weight(or quantity) refers to only the weight of the goods in container.