Salary Formula:
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Net salary, often called take-home pay, is the amount of money you receive after all deductions (taxes, insurance, retirement contributions, etc.) have been subtracted from your gross salary.
The calculator uses the following formula:
Where:
Details: Understanding your net salary helps with budgeting, financial planning, and ensuring you're being taxed correctly. It shows your actual disposable income.
Tips: Enter all amounts in dollars. For monthly calculations, use monthly figures. For annual calculations, use annual figures. All values must be positive numbers.
Q1: What's the difference between gross and net salary?
A: Gross salary is your total earnings before deductions, while net salary is what you actually take home after all deductions.
Q2: Are all deductions included in this calculation?
A: This calculator includes major tax deductions. Other deductions (retirement, insurance, etc.) would need to be added to the tax amounts for complete accuracy.
Q3: How can I estimate my tax withholdings?
A: Use IRS withholding calculator or your last pay stub as reference. Tax amounts vary based on income, filing status, and allowances.
Q4: Is FICA the same for everyone?
A: FICA is typically 7.65% (6.2% Social Security + 1.45% Medicare) up to the Social Security wage base. High earners pay an additional 0.9% Medicare tax.
Q5: Why is my net pay different from this calculation?
A: This is a simplified calculation. Actual paychecks may include other deductions like health insurance, retirement contributions, or wage garnishments.