Frequently Asked Questions(FAQ)

What is the difference between net revenue and gross revenue?

Net revenue is the total revenue a company earns after deducting all those discounts, returns, and allowances from its gross revenue. Gross revenue, on the other hand, refers to the total revenue a company earns before any deductions or adjustments are made. 

In other words, net revenue is the revenue that a company actually earns, while gross revenue is the total revenue generated by the company's sales. Gross revenue will always be higher than net revenue. 

What are some common expenses that are deducted from net revenue?

Some common expenses that are deducted from net revenue include COGS, operating expenses such as rent, utilities, and salaries, depreciation and amortization, interest expenses, and taxes. These expenses are subtracted from gross revenue to arrive at net revenue, which represents the total revenue the business has earned after all expenses have been accounted for.

Do people earn net revenue?

Though the term is more commonly referred to as net income, some people may refer to the amount of money they bring home after their deductions as net revenue. That said, net revenue is more commonly used in the business environment whereas people use the term net or gross income to refer to the amount of money reflected on their paystub.

About the Authors

Ann Schreiber

Written by: Ann Schreiber

Seasoned Copywriter & Content Marketer

Ann has been a marketer and a content writer for over 20 years. She worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

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