Gross vs Net Income: How To Calculate and Why It Matters for Business
If, for example, you earn a gross salary of $52,000 a year, and your company pays you on a weekly basis, your gross income is $1,000 a week. Discounts also play a role—gross price includes the base amount, while net price reflects what you actually pay after promotions or fees. It influences pricing strategies, as understanding customer profitability requires analyzing net figures. Whether it’s your salary, revenue, or even weight, knowing the difference between net and gross is more than...
