Legal Definitions - net

Definition: The net is the amount of value left over after subtracting any expenses, liabilities, taxes, or other amounts that take away from the amount’s value. For example, net earnings is a business’s gross earnings less the cost of goods sold, operating and overhead expenses, depreciation expenses, financing expenses, and any other expenses incurred in managing the business.

Example: If a lemonade stand makes $50 in sales but spent $20 on lemons, sugar, and cups, then the net profit is $30.

Explanation: The net profit is the amount of money the lemonade stand made after subtracting the expenses of buying the ingredients and supplies. In this case, the net profit is $30, which is the amount of money the lemonade stand gets to keep.