Gross vs net

Gross vs net — gross is a figure before a deduction (tax, fees, dues, vacancy); net is what remains after. PH bank interest loses 20% final withholding tax at source, so a 6.00% gross bond coupon is a 4.8% net yield. The permanent habit: always ask “net of what?”, and never compare one asset’s gross against another’s net — that mismatch is the oldest sales trick in finance.

First used in: 1.1 · The two hurdles: benchmarking math I