Free Payroll Calculator
Use this calculator to estimate your net pay per pay period after common deductions. Please note that this is an estimation tool and actual withholdings may vary based on your specific tax situation, W-4 elections, and state/local tax laws.
e.g., 401k contributions, health insurance premiums
e.g., Roth 401k, union dues, garnishments
Your Estimated Paycheck:
Gross Pay: $0.00
Taxable Gross Pay: $0.00
Social Security Tax (6.2%):
Medicare Tax (1.45%): $0.00
Estimated Federal Tax: $0.00
Estimated State Tax: $0.00
Total Taxes Withheld: $0.00
Total Pre-Tax Deductions: $0.00
Total Post-Tax Deductions: $0.00
Estimated Net Pay: $0.00
Understanding Your Paycheck with a Free Payroll Calculator
A payroll calculator is an essential tool for anyone looking to understand how their gross earnings translate into their take-home pay, also known as net pay. It helps you estimate the various deductions that are typically withheld from your salary or wages each pay period.
What is Gross Pay?
Gross pay is the total amount of money you earn before any deductions are taken out. If you're an hourly employee, this is your hourly rate multiplied by the number of hours worked. For salaried employees, it's your annual salary divided by the number of pay periods in a year (e.g., 26 for bi-weekly, 12 for monthly).
Key Payroll Deductions Explained
Understanding the different types of deductions is crucial for managing your finances:
- Pre-Tax Deductions: These are deductions taken from your gross pay *before* taxes are calculated. Common examples include contributions to a 401(k) or 403(b) retirement plan, health insurance premiums, and Flexible Spending Account (FSA) contributions. Because they reduce your taxable income, they can lower your overall tax liability.
- Taxable Gross Pay: This is your gross pay minus any pre-tax deductions. Your income taxes (federal, state, and FICA) are calculated based on this amount.
- Federal Income Tax: This is money withheld by your employer and sent to the U.S. Treasury. The amount depends on your income, marital status, and the allowances you claim on your W-4 form. Our calculator uses a percentage for estimation.
- State Income Tax: Similar to federal tax, this is withheld for state governments. Not all states have income tax. The amount depends on state-specific tax laws. Our calculator uses a percentage for estimation.
- FICA Taxes (Social Security and Medicare): These are federal taxes that fund Social Security (retirement, disability, and survivor benefits) and Medicare (health insurance for the elderly and disabled).
- Social Security Tax: Currently 6.2% of your taxable gross pay, up to an annual earnings limit.
- Medicare Tax: Currently 1.45% of your taxable gross pay, with no earnings limit.
- Post-Tax Deductions: These are deductions taken from your pay *after* all taxes have been calculated and withheld. Examples include Roth 401(k) contributions, union dues, garnishments, or certain charitable contributions.
What is Net Pay?
Net pay, often referred to as "take-home pay," is the amount of money you receive after all taxes and other deductions have been subtracted from your gross pay. It's the actual amount that gets deposited into your bank account or paid to you via check.
How to Use This Calculator
- Enter Gross Pay per Pay Period: Input the total amount you earn before any deductions for a single pay period.
- Enter Federal & State Tax Withholding Percentages: Provide an estimated percentage for federal and state income tax. If you're unsure, you can use a common estimate or check your previous pay stubs.
- Enter Total Pre-Tax Deductions: Sum up all deductions that reduce your taxable income (e.g., 401k, health insurance).
- Enter Total Post-Tax Deductions: Sum up all deductions taken after taxes (e.g., Roth 401k, union dues).
- Click "Calculate Net Pay": The calculator will instantly display a breakdown of your estimated gross pay, taxable gross, individual tax amounts, total deductions, and your final net pay.
Important Considerations
This free payroll calculator provides an estimate. Actual payroll calculations can be more complex due to factors like:
- Specific W-4 elections (e.g., number of allowances, additional withholding)
- State and local tax variations (some states have no income tax, others have local taxes)
- Annual caps on Social Security tax
- Additional Medicare Tax for high earners
- Specific benefits or deductions unique to your employer
Always refer to your official pay stubs for exact figures and consult with a tax professional for personalized advice.