Gross Horespower is the total of all the horspower your engine develops. Net horsepower is calculated by deducting all the things that take horsepower away and what your left with at the rear wheels, kind of like your paycheck.
Actually, net horsepower is still measured at the crank, but its measured with all emissions equipment, water pump, alternator, fan, etc. hooked up. Gross is with all that stuff disconnected.
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