Nov 16, 2025

Net

• Net means “what’s left over after subtracting all costs or deductions.” It’s the true or final amount after expenses.

How do I remember it?

• Think of it as, “Net = after everything is taken out.”

Real world example

• A small AI startup earns $100,000 from selling its product this month.

• Its expenses are:

$40,000 for engineers’ salaries

$20,000 for cloud servers and tools

$10,000 for marketing

Total costs = $70,000

Net profit = $100,000 − $70,000 = $30,000

• This $30,000 is what the company actually keeps, its net profit!