Gross VS Net Income

Meaning & Definition

What is Gross vs Net Income

Gross income is the total earnings an individual or business receives before deducting expenses and taxes. It represents the overall revenue generated. Net income, on the other hand, is the remaining amount after subtracting all expenses, taxes, and deductions from the gross income. Net income reflects the actual profit or take-home pay. While gross income showcases the total revenue, net income provides a more accurate picture of financial health.