gross income

Gross Income

1. An individual's total personal income before taking taxes or deductions into account.

2. A company's revenue minus cost of goods sold. Also called "gross margin" and "gross profit".

Notes:

1. Your gross income is how much you make before taxes. It is the figure people are looking for when they ask how much you gross a month.

2. This is an important number when analyzing a company, it indicates how efficiently management uses labor and supplies in the production process. Keep in mind that gross income varies significantly from industry to industry.

See also: Adjusted Gross Income - AGI, Cost of Goods Sold, Income, Net Income, Revenue

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Gross income

A person's total income prior to exclusions and deductions.

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gross income

1. For a business, its total revenues exclusive of any expenses.

2. For an individual, all income except as specifically exempted by the Internal Revenue Code. For example, an inheritance is specifically excluded from gross income.