Gross income is the total earnings an individual or business receives before any deductions, such as taxes, insurance, and retirement contributions, are taken out. For individuals, gross income includes wages, bonuses, and other income sources. Lenders and financial institutions use gross income to assess a borrower’s capacity to manage and repay debt, making it an essential factor in loan eligibility. Understanding gross income helps people gauge their earning capacity, making it easier to budget, manage debt, and plan for savings and investments.