Gross Amount

What is gross amount?

The gross amount is the total of all your line items before anything is added or subtracted. It's the raw sum of your charges—labor, materials, services—before taxes, discounts, or other adjustments come into play.

Think of it as the starting point for calculating what your client actually owes.

Gross amount on an invoice

On a typical invoice, you'll see:

• Line items — Individual charges for products or services
• Subtotal (Gross Amount) — Sum of all line items
• Discounts — Any reductions applied
• Taxes — Sales tax, VAT, or other applicable taxes
• Total Due (Net Amount) — Final amount the client pays

The gross amount is the subtotal before discounts and taxes are factored in.

Gross vs. net amount

Gross amount is the total before deductions. Net amount is the final total after all adjustments. If you offer a 10% discount and add 8% tax, the gross is your starting figure, and the net is what the client actually pays. Both numbers matter for accurate bookkeeping.

Why it matters

Understanding the difference between gross and net helps you track revenue accurately, apply discounts correctly, and calculate taxes properly. When reviewing your business performance, gross revenue tells you the full value of work you've done, while net shows what you actually collected.