Use this calculator to estimate your take-home pay after various deductions. Understanding your net pay is crucial for budgeting and financial planning.
Annually
Monthly
Bi-Weekly
Weekly
Understanding Your 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. It's the actual money that lands in your bank account or is given to you as a check.
Gross Pay vs. Net Pay
Gross Pay is the total amount of money you earn before any deductions are taken out. This includes your base salary or hourly wages, plus any bonuses, commissions, or overtime pay.
Net Pay is what's left after all mandatory and voluntary deductions are applied to your gross pay. This is the figure that truly impacts your personal budget.
Common Deductions Explained
Several types of deductions can reduce your gross pay to your net pay. These typically fall into two categories: mandatory and voluntary.
Mandatory Deductions:
Federal Income Tax: This is money withheld from your paycheck by the federal government to fund public services. The amount depends on your income, filing status, and the allowances you claim on your W-4 form.
State Income Tax: Similar to federal tax, but collected by your state government. Not all states have state income tax.
Social Security Tax (FICA): This funds the Social Security program, which provides retirement, disability, and survivor benefits. As of 2024, the employee contribution rate is 6.2% of your gross wages, up to an annual wage base limit ($168,600 for 2024).
Medicare Tax (FICA): This funds the Medicare program, which provides health insurance for individuals aged 65 or older, and some younger people with disabilities. The employee contribution rate is 1.45% of all gross wages, with no wage base limit.
Voluntary Deductions:
These are deductions you authorize, often for benefits or savings.
Pre-Tax Deductions: These are taken out of your gross pay before income taxes are calculated, effectively reducing your taxable income. Common examples include contributions to a 401(k) or 403(b) retirement plan, health insurance premiums, Health Savings Accounts (HSAs), and Flexible Spending Accounts (FSAs).
Post-Tax Deductions: These are taken out after income taxes have been calculated. Examples include Roth 401(k) contributions, union dues, charitable contributions, or certain types of life insurance premiums.
How Net Pay is Calculated (Step-by-Step)
Determine Gross Pay per Period: Your annual salary is divided by the number of pay periods in a year (e.g., 12 for monthly, 26 for bi-weekly, 52 for weekly).
Subtract Pre-Tax Deductions: Any pre-tax contributions (like 401k, health insurance) are removed from your gross pay. This new amount is your taxable income for federal and state income taxes.
Calculate FICA Taxes: Social Security (6.2% up to the annual cap) and Medicare (1.45% with no cap) are typically calculated on your gross wages before most pre-tax deductions.
Calculate Federal Income Tax: Based on your taxable income, filing status, and W-4 elections, federal income tax is withheld.
Calculate State Income Tax: If applicable, state income tax is withheld based on your state's tax laws and your taxable income.
Subtract Post-Tax Deductions: Any post-tax contributions (like Roth 401k, union dues) are removed.
The Result is Net Pay: What remains after all these deductions is your net pay.
Example Calculation:
Let's use the default values in the calculator:
Gross Annual Salary: $60,000
Pay Frequency: Bi-Weekly (26 pay periods)
Estimated Federal Tax Rate: 15%
Estimated State Tax Rate: 5%
Pre-Tax Deductions per period: $100
Post-Tax Deductions per period: $50
Gross Pay per Period: $60,000 / 26 = $2,307.69
Pre-Tax Deductions: $100.00
Taxable Income (for Income Tax): $2,307.69 – $100.00 = $2,207.69
Social Security Tax: ($60,000 * 0.062) / 26 = $143.08 (assuming annual income is below cap)
Net Pay per Period: $2,307.69 (Gross) – $768.07 (Total Deductions) = $1,539.62
This example demonstrates how various deductions significantly reduce your gross earnings to your final net pay. Use the calculator above to get a personalized estimate.
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function calculateNetPay() {
var grossAnnualSalary = parseFloat(document.getElementById("grossAnnualSalary").value);
var payFrequency = document.getElementById("payFrequency").value;
var federalTaxRate = parseFloat(document.getElementById("federalTaxRate").value) / 100;
var stateTaxRate = parseFloat(document.getElementById("stateTaxRate").value) / 100;
var preTaxDeductions = parseFloat(document.getElementById("preTaxDeductions").value);
var postTaxDeductions = parseFloat(document.getElementById("postTaxDeductions").value);
// Validate inputs
if (isNaN(grossAnnualSalary) || grossAnnualSalary < 0 ||
isNaN(federalTaxRate) || federalTaxRate 1 ||
isNaN(stateTaxRate) || stateTaxRate 1 ||
isNaN(preTaxDeductions) || preTaxDeductions < 0 ||
isNaN(postTaxDeductions) || postTaxDeductions < 0) {
document.getElementById("netPayResult").innerHTML = "Please enter valid positive numbers for all fields. Tax rates should be between 0 and 100.";
return;
}
var payPeriodsPerYear;
switch (payFrequency) {
case "annually":
payPeriodsPerYear = 1;
break;
case "monthly":
payPeriodsPerYear = 12;
break;
case "bi-weekly":
payPeriodsPerYear = 26;
break;
case "weekly":
payPeriodsPerYear = 52;
break;
default:
payPeriodsPerYear = 1; // Should not happen with select, but as a fallback
}
var grossPayPerPeriod = grossAnnualSalary / payPeriodsPerYear;
// Ensure pre-tax deductions don't exceed gross pay for the period
var actualPreTaxDeductions = Math.min(preTaxDeductions, grossPayPerPeriod);
// Taxable income for Federal/State Income Tax
var taxableIncomeForIncomeTax = grossPayPerPeriod – actualPreTaxDeductions;
if (taxableIncomeForIncomeTax < 0) taxableIncomeForIncomeTax = 0;
// Social Security Tax (6.2% up to annual cap, 2024 cap is $168,600)
// Social Security is generally calculated on gross wages before most pre-tax deductions.
var annualSocialSecurityTaxableIncome = grossAnnualSalary;
var socialSecurityCap = 168600; // 2024 cap
var annualSocialSecurityTax = Math.min(annualSocialSecurityTaxableIncome, socialSecurityCap) * 0.062;
var socialSecurityTaxPerPeriod = annualSocialSecurityTax / payPeriodsPerYear;
// Medicare Tax (1.45%, no cap)
// Medicare is also generally calculated on gross wages.
var medicareTaxPerPeriod = grossPayPerPeriod * 0.0145;
// Federal Income Tax
var federalIncomeTaxPerPeriod = taxableIncomeForIncomeTax * federalTaxRate;
// State Income Tax
var stateIncomeTaxPerPeriod = taxableIncomeForIncomeTax * stateTaxRate;
// Total Deductions
var totalDeductionsPerPeriod = actualPreTaxDeductions + socialSecurityTaxPerPeriod + medicareTaxPerPeriod + federalIncomeTaxPerPeriod + stateIncomeTaxPerPeriod + postTaxDeductions;
// Net Pay
var netPayPerPeriod = grossPayPerPeriod – totalDeductionsPerPeriod;
// Format results
var currencyFormatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
var resultHTML = "
Net Pay per Period: " + currencyFormatter.format(netPayPerPeriod) + "
";
resultHTML += "Note: This is an estimate. Actual taxes may vary based on specific tax laws, filing status, additional deductions/credits, and the exact nature of pre-tax deductions. Social Security tax is capped annually.";
document.getElementById("netPayResult").innerHTML = resultHTML;
}