Gross income is the amount that a business earns from the sale of goods or services, before selling, administrative, tax, and other expenses have been deducted. Gross income equates to gross margin, which is sales minus the cost of goods sold.
How to Use
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.
Gross Income = Gross Revenue - Cost of Goods Sold (COGS)