What's what in finances: Gross

The total amount of money you have earned in a period of time before deductions such as taxes.

For an individual, gross is the total pay from his or her employer before taxes or other deductions. This includes income from all sources and is not limited to income received in cash; it also includes property or services received.

An individual’s gross income is used by lenders or landlords to determine whether said individual is a worthy borrower or renter.

A company’s gross income, or gross profit margin, is the most simple measure of the firm’s profitability. While the gross income metric includes the direct cost of producing or providing goods and services, it does not include other costs related to selling activities, administration, taxes, and other costs related to running the overall business.

The gross income for a company reveals how much money it has made on its products or services after subtracting the direct costs to make the product or provide the service.

Another term related to gross is profit.

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