Difference Between Gross and Net

Definition of Gross

• Gross is the total amount exclusive of deductions.
• For example, gross pay, is the total pay before tax deductions

Definition of Net

• Net is the total amount received after subtracting deductions from the gross amount

Difference Between Gross Interest Rates and Net Interest Rates

Gross interest rate is the headline interest advertised by a bank

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. In the UK, most banks take tax at source.

Difference between Gross Pay and Net Pay

• Gross Pay The headline wage rate.
• Net Pay, this 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.

Related

• Gross, net and gross AER interest rates