Invoicing explained
Gross amount vs Net amount
On an invoice, the net amount is the price before tax; the gross amount is the total after tax is added. Net is what you charge for the work; gross is what the client actually pays.
What is gross amount?
The gross amount is the final total including tax (such as VAT or sales tax) and after any discount. It's the figure the client pays.
What is net amount?
The net amount is the value of the goods or services before tax. Your subtotal is the sum of the net line amounts; tax is added on top to reach the gross total.
Gross amount vs Net amount: the key differences
Here's how gross amount and net amount differ at a glance:
- Tax — net excludes tax; gross includes it.
- On the invoice — net amounts sum to the subtotal; gross is the total due.
- What the client pays — the gross amount.
How this works in Invco
Yes. You set a tax rate on each line item and, if you like, a percentage or fixed discount. Invco works out the net subtotal, the tax and the total due, in whichever currency you choose for that invoice.
Invco is invoicing software for people who run more than one company. Design your own invoice template or upload your existing invoice PDF, add line items with per-line tax and discounts, and Invco calculates the totals, numbers each invoice sequentially and emails it as a branded PDF from your own address. Every invoice is tracked from draft to sent to paid, and overdue ones are flagged automatically. Plans from $10/month.
More invoicing comparisons
- Invoice vs EstimateAn estimate is a non-binding projection of what a job will cost, sent before the work.
- Invoice vs ReceiptAn invoice requests payment for goods or services; a receipt confirms that payment has been made.
- Invoice vs QuoteA quote is a fixed price offered before the work; an invoice is the bill sent after it.
- Net 30 vs Due on ReceiptNet 30 gives the client 30 days to pay from the invoice date; due on receipt asks for payment immediately.
Frequently asked questions
What is the difference between gross amount and net amount?
On an invoice, the net amount is the price before tax; the gross amount is the total after tax is added. Net is what you charge for the work; gross is what the client actually pays.
Does Invco calculate net, tax and gross totals?
Yes. You set a tax rate on each line item and, if you like, a percentage or fixed discount. Invco works out the net subtotal, the tax and the total due, in whichever currency you choose for that invoice.
How much does Invco cost?
Starter is $10/month for 1 company, Growth is $20/month for up to 3 companies, Pro is $30/month for up to 8 companies, Scale is $50/month for up to 20 companies, and Unlimited is $100/month with no cap. Every plan includes every feature, with no per-invoice fees, and you get a full refund if you cancel within 7 days of a charge.
Invoice the easy way with Invco
Design your invoice template, send branded PDFs from your own email address, and see what's paid and overdue for every company. Plans from $10/month, with a full refund within 7 days.
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