Common mistake in English

For instance, when you are talking about gross profit, you are talking about the difference between revenue and the cost of making the product. When you are subtracting interest payments, taxation, and selling, administrative, general, and all the other expenses, gross profit becomes net profit, and it obviously is lower. In other words, net profit is the amount of money that remains in the company after it has paid all of its expenses and there is no way that it will get any lower than it already is.

You might also encounter such phrases as “gross weight” and “net weight” but the difference between the two is the same. Just as it is in the case with profit or income, gross weight is the total weight and includes the packaging as well as the product. If you are talking about net weight, it is smaller because it only includes the weight of the product itself.

One other example of the use of gross vs net is when you refer to the lease: the expenses that the tenant needs to pay. A gross lease is a type that requires the tenant to pay property taxes, maintenance insurance, and utility bills, in addition to the rent. A net lease, in contrast, is the one where the tenant only pays the rent.