# Gross interest rate ($R$) v. Net interest rate ($R-1$)

I am reading a macro-finance article that deals with asset financing.

While it defines the gross interest rate to be $$R$$, it defines the net interest rate to be $$r\equiv R-1$$. In equilibrium, the interest rate on one-period loan is said to be $$R=\frac{1}{\beta}$$, where $$\beta$$ is the discount factor applied to the dividends firms obtain over an infinite horizon.

$$\textbf{My Question}:$$ How do you interpret the difference between $$R$$ and $$r$$? Is it conventional to define net interest in macro-finance literature in this way?