Calculate Net Payroll

Net Payroll Calculator

Use this calculator to estimate your take-home pay after various deductions and taxes are applied to your gross income. Understanding your net pay is crucial for budgeting and financial planning.

Weekly Bi-Weekly Semi-Monthly Monthly

function calculateNetPayroll() { var grossPayAmount = parseFloat(document.getElementById('grossPayAmount').value); var payFrequencyValue = parseFloat(document.getElementById('payFrequency').value); var federalTaxRate = parseFloat(document.getElementById('federalTaxRate').value); var stateTaxRate = parseFloat(document.getElementById('stateTaxRate').value); var preTax401k = parseFloat(document.getElementById('preTax401k').value); var preTaxHealth = parseFloat(document.getElementById('preTaxHealth').value); var postTaxDeductions = parseFloat(document.getElementById('postTaxDeductions').value); // Validate inputs if (isNaN(grossPayAmount) || grossPayAmount < 0) { document.getElementById('payrollResult').innerHTML = 'Please enter a valid Annual Gross Pay.'; return; } if (isNaN(federalTaxRate) || federalTaxRate 100) { document.getElementById('payrollResult').innerHTML = 'Please enter a valid Federal Tax Rate (0-100%).'; return; } if (isNaN(stateTaxRate) || stateTaxRate 100) { document.getElementById('payrollResult').innerHTML = 'Please enter a valid State Tax Rate (0-100%).'; return; } if (isNaN(preTax401k) || preTax401k < 0) { preTax401k = 0; } if (isNaN(preTaxHealth) || preTaxHealth < 0) { preTaxHealth = 0; } if (isNaN(postTaxDeductions) || postTaxDeductions < 0) { postTaxDeductions = 0; } // Constants for FICA taxes (2024 values) var socialSecurityRate = 0.062; var socialSecurityLimit = 168600; // Annual limit for Social Security taxable earnings (2024) var medicareRate = 0.0145; // Calculate gross pay per period var grossPayPerPeriod = grossPayAmount / payFrequencyValue; // Calculate pre-tax deductions var totalPreTaxDeductions = preTax401k + preTaxHealth; // Calculate taxable gross for income taxes var taxableGrossForIncomeTax = grossPayPerPeriod – totalPreTaxDeductions; if (taxableGrossForIncomeTax socialSecurityLimit) { // If annual gross exceeds limit, SS tax is capped annually and distributed per period socialSecurityTaxPerPeriod = (socialSecurityLimit * socialSecurityRate) / payFrequencyValue; } else { // Otherwise, it's 6.2% of the gross pay for this period socialSecurityTaxPerPeriod = grossPayPerPeriod * socialSecurityRate; } var medicareTaxPerPeriod = grossPayPerPeriod * medicareRate; // Medicare has no income limit // Calculate Federal and State Income Taxes var federalIncomeTax = taxableGrossForIncomeTax * (federalTaxRate / 100); var stateIncomeTax = taxableGrossForIncomeTax * (stateTaxRate / 100); // Calculate total deductions var totalDeductions = totalPreTaxDeductions + socialSecurityTaxPerPeriod + medicareTaxPerPeriod + federalIncomeTax + stateIncomeTax + postTaxDeductions; // Calculate net pay var netPayPerPeriod = grossPayPerPeriod – totalDeductions; // Format results var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', }); var resultHTML = '

Payroll Summary (Per Pay Period)

'; resultHTML += 'Gross Pay: ' + formatter.format(grossPayPerPeriod) + "; resultHTML += '

Deductions:

'; resultHTML += '

'; resultHTML += '
• Pre-tax 401(k): ' + formatter.format(preTax401k) + '
'; resultHTML += '
• Pre-tax Health Insurance: ' + formatter.format(preTaxHealth) + '
'; resultHTML += '
• Social Security Tax: ' + formatter.format(socialSecurityTaxPerPeriod) + '
'; resultHTML += '
• Medicare Tax: ' + formatter.format(medicareTaxPerPeriod) + '
'; resultHTML += '
• Federal Income Tax: ' + formatter.format(federalIncomeTax) + '
'; resultHTML += '
• State Income Tax: ' + formatter.format(stateIncomeTax) + '
'; resultHTML += '
• Other Post-tax Deductions: ' + formatter.format(postTaxDeductions) + '
'; resultHTML += '

'; resultHTML += 'Total Deductions: ' + formatter.format(totalDeductions) + "; resultHTML += 'Net Pay: ' + formatter.format(netPayPerPeriod) + ''; document.getElementById('payrollResult').innerHTML = resultHTML; }

Understanding Your Net Payroll

Net payroll, often referred to as "take-home pay," is the amount of money an employee receives after all deductions and taxes have been subtracted from their gross earnings. It's the actual amount that hits your bank account or is included in your paycheck.

Gross Pay vs. Net Pay

Your gross pay is your total earnings before any deductions. This includes your annual salary, hourly wages multiplied by hours worked, commissions, bonuses, and any other compensation. Your net pay is what's left after all mandatory and voluntary deductions are taken out.

Key Components of Net Payroll Deductions

Several types of deductions contribute to the difference between your gross and net pay:

1. Pre-tax Deductions

These deductions are taken from your gross pay before income taxes are calculated, effectively reducing your taxable income. Common pre-tax deductions include:

• 401(k) Contributions: Money you contribute to a retirement savings plan.
• Health Insurance Premiums: Your share of the cost for health, dental, or vision insurance.
• Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs): Funds set aside for healthcare expenses.

2. FICA Taxes (Federal Insurance Contributions Act)

These are mandatory federal taxes that fund Social Security and Medicare programs.

• Social Security Tax: Funds retirement, disability, and survivor benefits. The employee portion is 6.2% of earnings up to an annual wage base limit (e.g., $168,600 for 2024).
• Medicare Tax: Funds hospital insurance for the elderly and disabled. The employee portion is 1.45% of all earnings, with no wage base limit.

3. Income Taxes

These are taxes levied by federal and, in most cases, state governments based on your income.

• Federal Income Tax: The amount withheld depends on your gross pay, filing status, and the allowances/adjustments you claim on your W-4 form.
• State Income Tax: Many states also levy income tax, with rates and rules varying significantly by state. Some states have no state income tax.
• Local Income Tax: Some cities or counties may also impose local income taxes.

4. Post-tax Deductions

These deductions are taken from your pay after all pre-tax deductions and taxes have been calculated. They do not reduce your taxable income.

• Roth 401(k) Contributions: Retirement contributions made with after-tax dollars.
• Union Dues: Fees paid to a labor union.
• Garnishments: Court-ordered deductions for debts like child support or unpaid taxes.
• Life Insurance Premiums: If not offered as a pre-tax benefit.

How to Use the Net Payroll Calculator

Our calculator simplifies the estimation process. Here's how to use it:

1. Annual Gross Pay: Enter your total yearly earnings before any deductions.
2. Pay Frequency: Select how often you get paid (e.g., weekly, bi-weekly, monthly).
3. Federal/State Income Tax Withholding (%): Provide an estimated percentage for your federal and state income tax withholding. This is a simplification; actual withholding depends on your W-4 and state tax forms.
4. Pre-tax 401(k) Contribution (per pay period): Enter the amount you contribute to your 401(k) each pay period.
5. Pre-tax Health Insurance Premium (per pay period): Input the amount you pay for health insurance each pay period.
6. Other Post-tax Deductions (per pay period): Include any other regular deductions taken after taxes, such as union dues or Roth 401(k) contributions.

Click "Calculate Net Pay" to see a detailed breakdown of your gross pay, deductions, and estimated net pay per period.

Example Calculation

Let's consider an individual with an annual gross pay of $60,000, paid bi-weekly (26 pay periods per year).

• Annual Gross Pay: $60,000
• Pay Frequency: Bi-Weekly
• Federal Income Tax Withholding: 15%
• State Income Tax Withholding: 5%
• Pre-tax 401(k) Contribution: $100 per pay period
• Pre-tax Health Insurance Premium: $50 per pay period
• Other Post-tax Deductions: $20 per pay period

Based on these inputs, the calculator would perform the following steps:

1. Gross Pay Per Period: $60,000 / 26 = $2,307.69
2. Total Pre-tax Deductions: $100 (401k) + $50 (Health) = $150.00
3. Taxable Gross for Income Tax: $2,307.69 – $150.00 = $2,157.69
4. Social Security Tax: $2,307.69 * 6.2% = $143.08
5. Medicare Tax: $2,307.69 * 1.45% = $33.46
6. Federal Income Tax: $2,157.69 * 15% = $323.65
7. State Income Tax: $2,157.69 * 5% = $107.88
8. Total Deductions: $150.00 + $143.08 + $33.46 + $323.65 + $107.88 + $20.00 = $778.07
9. Net Pay Per Period: $2,307.69 – $778.07 = $1,529.62

Important Disclaimer

This calculator provides an estimate of your net pay. Actual payroll calculations can be more complex and may vary due to specific state and local tax laws, additional deductions not listed here, and the precise way your employer calculates withholding based on your W-4 and state tax forms. For exact figures, always refer to your official pay stubs or consult with a payroll professional.