Difference Between Gross and Net

Often in companies and in the food products we buy we see that two words are used that many repeat despite their unknown meaning: gross and net. Difference Between Gross and Net

What do “net weight” packages mean? And what do companies with gross salary or net income refer to?

If you don’t know what the difference is between net and gross either, keep reading; because we will explain it to you below.

STUPID  Difference Between Gross and Net

When we talk about income, the word “gross” refers to the total; no deductions for taxes or similar expenses. It could also refer to gross sales and profits, which are calculated without taking into account the deduction of expenses.

Gross is the integer part. If we apply it to our salary, what it means is that it is calculated without taking into account the discount made for health insurance, taxes, profit sharing.

The following example better illustrates the above:

If Mariana is working for a salary of $ 10 an hour and works 40 hours a week, then her gross salary would be $ 400.

Gross income is calculated by subtracting the costs of goods from the income earned. The costs of goods include all the costs incurred for the purchase of goods, production of products, storage of products until their sale.


Net refers to the amount left over after deductions are made. It is the value that remains after all expenses have been subtracted from gross income, costs and expenses. .

Example: Ana María has a gross salary of 400 dollars and 60 is deducted, so the net would be 340 dollars.

Also, when we see that in canned products it says “net weight”; We must understand that it refers specifically to the weight of the product that the can or package contains; regardless of the envelope.

In conclusion, if you want to know what your net salary is, you just have to start deducting all the expenses and taxes that you pay automatically. Maybe you get a surprise.

Difference between net and gross

  • Gross is when total income is taken into account as such, without deducting taxes or expenses; while net is what is left when deductions for taxes and such are made.

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