Definition, Meaning & Synonyms
net-rate
noun
net reɪt
Definition
The net rate refers to the final rate applied after all deductions, such as taxes, discounts, or allowances, have been taken into consideration.
Examples
- The company offered a net rate of 5% after considering all applicable discounts.
- When calculating the net rate for a loan, borrowers should account for interest and fees.
- The net rate for subscriptions may vary based on promotional offers.
Meaning
It indicates the amount remaining after various subtractions have been made from the gross rate, making it a key figure in financial contexts.
Synonyms
- Final rate
- Effective rate
- Net yield
