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 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 is 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.