---
term: "Gross and net"
category: "Settlement and reconciliation"
url: https://federatedbanking.com/glossary/gross-and-net
source: Federated Banking™ glossary
---

# Gross and net

> Gross is the total of all obligations; net is what remains to be paid after offsetting.

Gross is the full value of the obligations between participants before they are offset. Net is what is left once amounts owed in both directions have been cancelled against each other. Showing both lets a network see the size of its activity and the much smaller amount that actually needs to move.

Related terms: [Netting](https://federatedbanking.com/glossary/netting.md), [Settlement](https://federatedbanking.com/glossary/settlement.md)