Net price for a product or service is the cost after deducting sales tax, discounts and rebates. In education, the net price is tuition less any grants or scholarships received.
Since 2011, colleges and universities offering student aid programs are required to post a net price calculator on their websites to determine enrollment cost for one year of undergraduate study. Bookkeeping systems use net price to express the value of goods and services. Long-term trade agreements lasting over one month may set a net price within a written contract. Spot market pricing uses net price as a basis for a contract lasting less than one month.