Net Pay from Gross Pay Calculator
Use this calculator to estimate your net pay (take-home pay) from your gross salary, factoring in common deductions like federal and state income taxes, Social Security, Medicare, and other pre-tax and post-tax contributions.
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Bi-weekly
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Calculation Results:
Enter your details and click "Calculate Net Pay".
Understanding Gross Pay vs. Net Pay
When you receive a paycheck, you'll notice a difference between your "gross pay" and your "net pay." Gross pay is the total amount of money you earn before any deductions are taken out. Net pay, often referred to as "take-home pay," is the amount you actually receive after all deductions have been subtracted.
What is Gross Pay?
Gross pay is your total earnings from your employer before any taxes or other deductions. This includes your base salary or hourly wages, plus any overtime, bonuses, commissions, or tips. It's the figure often quoted when discussing your annual salary or hourly rate.
What is Net Pay?
Net pay is the amount of money that is deposited into your bank account or given to you as a check after all mandatory and voluntary deductions have been made. This is the money you have available to spend or save.
Common Deductions Explained:
Several types of deductions reduce your gross pay to arrive at your net pay. These can be broadly categorized as:
- Federal Income Tax: This is a mandatory tax levied by the U.S. government on your earnings. The amount withheld depends on your income, filing status, and the allowances you claim on your W-4 form.
- State Income Tax: Most states also levy an income tax. The rates and rules vary significantly by state, with some states having no state income tax at all.
- 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: As of 2024, the employee contribution rate is 6.2% of your gross wages, up to an annual earnings limit ($168,600 for 2024).
- Medicare: The employee contribution rate is 1.45% of all gross wages, with no earnings limit.
- Pre-tax Deductions: These are deductions taken from your gross pay before income taxes are calculated, which reduces your taxable income. Common examples include contributions to a 401(k) or 403(b) retirement plan, health insurance premiums, and contributions to a Flexible Spending Account (FSA) or Health Savings Account (HSA).
- Post-tax Deductions: These deductions are taken from your pay after all taxes have been calculated and withheld. Examples include contributions to a Roth 401(k), union dues, charitable contributions, or garnishments.
How to Use the Calculator:
- Annual Gross Salary: Enter your total annual earnings before any deductions.
- Pay Frequency: Select how often you get paid (e.g., Bi-weekly, Monthly). The calculator will convert your annual salary to a per-pay-period amount.
- Estimated Federal Income Tax Rate (%): Provide an estimate of your federal income tax rate. This is often an average of your marginal tax bracket or what you've seen withheld previously.
- Estimated State Income Tax Rate (%): Enter your estimated state income tax rate.
- Total Annual Pre-tax Deductions: Input the total amount of money deducted annually before taxes (e.g., your total 401k contributions for the year, annual health insurance premiums).
- Total Annual Post-tax Deductions: Enter the total amount of money deducted annually after taxes (e.g., Roth 401k contributions, union dues).
- Click "Calculate Net Pay" to see your estimated gross pay, total deductions, and net pay per pay period.
Example Calculation:
Let's say an individual has an annual gross salary of $60,000 and is paid bi-weekly. They estimate a 15% federal tax rate and a 5% state tax rate. They contribute $3,000 annually to their 401(k) (pre-tax) and $500 annually to union dues (post-tax).
- Annual Gross Salary: $60,000
- Pay Frequency: Bi-weekly (26 pay periods)
- Gross Pay Per Period: $60,000 / 26 = $2,307.69
- Annual Pre-tax Deductions: $3,000
- Pre-tax Deductions Per Period: $3,000 / 26 = $115.38
- Annual Post-tax Deductions: $500
- Post-tax Deductions Per Period: $500 / 26 = $19.23
- Social Security Tax (6.2% of $60,000): $3,720 annually / 26 = $143.08 per period
- Medicare Tax (1.45% of $60,000): $870 annually / 26 = $33.46 per period
- Taxable Gross Per Period (for income tax): $2,307.69 – $115.38 = $2,192.31
- Federal Income Tax (15% of $2,192.31): $328.85 per period
- State Income Tax (5% of $2,192.31): $109.62 per period
- Total Deductions Per Period: $115.38 (Pre-tax) + $143.08 (SS) + $33.46 (Medicare) + $328.85 (Federal) + $109.62 (State) + $19.23 (Post-tax) = $749.62
- Net Pay Per Period: $2,307.69 (Gross) – $749.62 (Total Deductions) = $1,558.07
This example demonstrates how various deductions significantly reduce the gross pay to arrive at the final net pay.
Your Estimated Paycheck Details (" + payFrequencyText + "):
"; output += "Gross Pay: " + formatter.format(grossPayPerPeriod) + ""; output += "Deductions:"; output += "- ";
output += "
- Pre-tax Deductions: " + formatter.format(preTaxDeductionsPerPeriod) + " "; output += "
- Social Security Tax: " + formatter.format(socialSecurityTaxPerPeriod) + " "; output += "
- Medicare Tax: " + formatter.format(medicareTaxPerPeriod) + " "; output += "
- Federal Income Tax: " + formatter.format(federalTaxPerPeriod) + " "; output += "
- State Income Tax: " + formatter.format(stateTaxPerPeriod) + " "; output += "
- Post-tax Deductions: " + formatter.format(postTaxDeductionsPerPeriod) + " "; output += "