Gross Pay and Net Pay Calculator

Gross Pay to Net Pay Calculator

Gross Pay (per pay period):

Federal Income Tax Withholding (%):

State Income Tax Withholding (%):

Social Security Tax (%):

Medicare Tax (%):

Health Insurance Premium (per pay period):

Retirement Contribution (% of Gross Pay):

Other Deductions (per pay period):

Calculation Results:

Gross Pay: 0.00

Total Deductions: 0.00

Net Pay: 0.00

function calculateNetPay() { var grossPay = parseFloat(document.getElementById('grossPay').value); var federalTaxRate = parseFloat(document.getElementById('federalTaxRate').value); var stateTaxRate = parseFloat(document.getElementById('stateTaxRate').value); var socialSecurityRate = parseFloat(document.getElementById('socialSecurityRate').value); var medicareRate = parseFloat(document.getElementById('medicareRate').value); var healthInsuranceCost = parseFloat(document.getElementById('healthInsuranceCost').value); var retirementContribution = parseFloat(document.getElementById('retirementContribution').value); var otherDeductions = parseFloat(document.getElementById('otherDeductions').value); // Default to 0 if NaN if (isNaN(grossPay)) grossPay = 0; if (isNaN(federalTaxRate)) federalTaxRate = 0; if (isNaN(stateTaxRate)) stateTaxRate = 0; if (isNaN(socialSecurityRate)) socialSecurityRate = 0; if (isNaN(medicareRate)) medicareRate = 0; if (isNaN(healthInsuranceCost)) healthInsuranceCost = 0; if (isNaN(retirementContribution)) retirementContribution = 0; if (isNaN(otherDeductions)) otherDeductions = 0; var federalTaxAmount = grossPay * (federalTaxRate / 100); var stateTaxAmount = grossPay * (stateTaxRate / 100); var socialSecurityAmount = grossPay * (socialSecurityRate / 100); var medicareAmount = grossPay * (medicareRate / 100); var retirementAmount = grossPay * (retirementContribution / 100); var totalDeductions = federalTaxAmount + stateTaxAmount + socialSecurityAmount + medicareAmount + healthInsuranceCost + retirementAmount + otherDeductions; var netPay = grossPay – totalDeductions; document.getElementById('displayGrossPay').innerText = grossPay.toFixed(2); document.getElementById('displayTotalDeductions').innerText = totalDeductions.toFixed(2); document.getElementById('displayNetPay').innerText = netPay.toFixed(2); } // Run calculation on page load with default values window.onload = calculateNetPay;

Understanding Gross Pay vs. Net Pay

When you receive a paycheck, you'll notice two key figures: your gross pay and your net pay. While both relate to your earnings, they represent very different amounts, and understanding the distinction is crucial for personal financial planning.

What is Gross Pay?

Gross pay is the total amount of money an employee earns before any deductions are taken out. This includes your regular salary or hourly wages, plus any overtime pay, bonuses, commissions, or other forms of compensation. It's the raw income you've generated for your work.

What is Net Pay?

Net pay, often referred to as "take-home pay," is the amount of money an employee receives after all deductions have been subtracted from their gross pay. This is the actual money that gets deposited into your bank account or given to you as a check.

Common Deductions from Gross Pay

The difference between your gross and net pay is made up of various deductions. These can vary based on your location, employment type, and personal choices. Common deductions include:

Federal Income Tax: Money withheld by your employer and sent to the federal government to cover your income tax liability. The amount depends on your income, filing status, and W-4 elections.
State Income Tax: Similar to federal tax, but for state governments. Not all states have state income tax.
Social Security Tax (FICA): A mandatory federal tax that funds Social Security benefits for retirees, the disabled, and survivors. As of 2024, the employee contribution rate is 6.2% on earnings up to an annual limit.
Medicare Tax (FICA): Another mandatory federal tax that funds Medicare, the federal health insurance program for people 65 or older and certain younger people with disabilities. The employee contribution rate is 1.45% on all earnings, with an additional 0.9% for high earners.
Health Insurance Premiums: If you receive health insurance through your employer, your share of the premium is typically deducted from your paycheck.
Retirement Contributions: Deductions for 401(k), 403(b), or other employer-sponsored retirement plans. These are often pre-tax, reducing your taxable income.
Other Deductions: This can include deductions for life insurance, disability insurance, union dues, commuter benefits, charitable contributions, or garnishments.

How to Use the Gross Pay to Net Pay Calculator

Our calculator simplifies the process of estimating your take-home pay. Here's how to use it:

Enter your Gross Pay: Input your total earnings for a single pay period (e.g., bi-weekly, monthly).
Enter Tax Withholding Percentages: Input the estimated percentages for Federal and State Income Tax. You can often find these on your pay stub or by consulting tax tables.
Enter Social Security and Medicare Rates: These are typically fixed percentages (6.2% and 1.45% respectively), but you can adjust them if needed.
Enter Health Insurance Premium: Input the fixed dollar amount deducted for your health insurance per pay period.
Enter Retirement Contribution: Input the percentage of your gross pay that goes towards your retirement plan.
Enter Other Deductions: Add any other fixed dollar amounts deducted from your pay.
Click "Calculate Net Pay": The calculator will instantly display your gross pay, total deductions, and your final net pay.

Example Calculation

Let's say your bi-weekly gross pay is 2,500. Here's how the deductions might break down:

Gross Pay: 2,500
Federal Income Tax (15%): 2,500 * 0.15 = 375
State Income Tax (5%): 2,500 * 0.05 = 125
Social Security Tax (6.2%): 2,500 * 0.062 = 155
Medicare Tax (1.45%): 2,500 * 0.0145 = 36.25
Health Insurance Premium: 150
Retirement Contribution (5%): 2,500 * 0.05 = 125
Other Deductions: 25

Total Deductions: 375 + 125 + 155 + 36.25 + 150 + 125 + 25 = 991.25

Net Pay: 2,500 – 991.25 = 1,508.75

This calculator provides a quick estimate, but for precise figures, always refer to your official pay stubs or consult with a financial advisor or HR department.