The number in a job offer and the number that lands in your bank account are rarely the same. Between them sit income tax, social contributions, insurance and other deductions. This calculator walks you from your gross pay to your net pay, the amount you actually take home. Enter your salary, your tax and contribution rates, and any other deductions, and it shows what’s left and where the rest went.
Enter your gross pay, the amount before anything is taken out.
Choose the pay period it covers: yearly, monthly, twice a month, every two weeks or weekly.
Enter your income tax rate as a percentage.
Enter your social security or pension contribution rate, if you pay one.
Add any other deductions, such as health insurance or a union fee, as fixed amounts.
Read the result: your net pay for the period, a breakdown of each deduction, and the same figures converted to a yearly total.
The rates you need are on your payslip or tax notice. If you’re weighing up a job offer and don’t have those yet, try a few realistic rates and look at the range.
Income tax = taxable pay × (tax rate ÷ 100)
Contributions = pay subject to contributions × (contribution rate ÷ 100)
Net pay = gross pay − income tax − contributions − other deductions
To compare pay across different periods, use these conversions:
Monthly × 12 = yearly
Every two weeks × 26 = yearly
Weekly × 52 = yearly
Twice a month × 24 = yearly
Take a gross salary of $60,000 a year, paid monthly. That’s $5,000 gross each month.
Income tax at 15%: $750
Pension or social contribution at 6%: $300
Health insurance: $150 (fixed)
Total deductions: $1,200
Net pay: 5,000 − 1,200 = $3,800 a month, or $45,600 a year. About 76% of the gross salary reaches your account.
Some deductions, such as contributions to a workplace pension, are taken out before income tax is calculated. That lowers the pay your tax is based on.
Using the same salary, suppose you put $250 a month into a pre-tax retirement plan:
Taxable pay: 5,000 − 250 = $4,750
Income tax at 15%: $712.50 (instead of $750)
Contributions: $300 and health insurance: $150, as before
Net pay: 5,000 − 250 − 712.50 − 300 − 150 = $3,587.50
You saved $250, but your take-home pay dropped by only $212.50, because you paid $37.50 less in tax. Whether a particular deduction is taken before or after tax depends on your country and your plan, so check your payslip.
People often worry that a pay rise could push them into a higher tax bracket and leave them with less money. It doesn’t work that way. In a progressive system, the higher rate applies only to the part of your income above the threshold, not to all of it.
Here’s an example with made-up brackets: 10% on the first $10,000, and 20% on everything above that. On an income of $12,000:
First $10,000 at 10% = $1,000
Remaining $2,000 at 20% = $400
Total tax = $1,400
That’s an effective rate of about 11.7%, even though the top slice is taxed at 20%. If you’re unsure of your own effective rate, divide the total tax on your payslip or tax notice by your gross income. That’s the figure to enter if the calculator asks for a single percentage.
Your gross salary isn’t the full cost of you to an employer. Many employers also pay contributions of their own, such as social security, pension matching or insurance, on top of your salary. These don’t come out of your pay, so they don’t appear in this calculation, but they’re worth knowing about when you compare offers.
Comparing a gross figure with a net one. A salary of “$50,000” and “$4,000 a month” can’t be compared until both are on the same footing.
Using the highest tax bracket as your rate. That overstates your tax. Use your effective rate.
Forgetting about benefits and bonuses. Bonuses and some benefits are taxed too, and sometimes at different rates.
Counting a three-paycheck month as normal. If you’re paid every two weeks, you receive 26 payments a year, so two months have three. Budget on the yearly figure, not on those months.
Assuming the result matches your payslip to the cent. Payroll systems apply allowances, thresholds and rounding rules that a simple calculator can’t reproduce.
What’s the difference between gross and net pay?
Gross pay is what you earn before deductions. Net pay, often called take-home pay, is what you receive after tax, contributions and other deductions.
Which tax rate should I enter?
Use the effective rate from your payslip or tax notice. If you don’t have one yet, enter an estimate and compare a few possibilities.
Does this calculator know my country’s tax rules?
No. Tax rates, allowances and contribution limits differ widely between countries and change over time, so you enter the rates yourself. The result is only as accurate as the figures you provide.
Can I use it to compare two job offers?
Yes. Enter each offer’s gross pay and the deductions you expect, then compare the net amounts. Remember to take benefits, pension matching and commuting costs into account too.
Can I use it for hourly pay?
Convert it to a yearly figure first: multiply your hourly rate by the hours you work each week, then by 52. For example, $20 an hour at 40 hours a week comes to $41,600 a year.
Why is my actual take-home pay different?
Payslips may include tax allowances, credits, benefits, bonuses, overtime or deductions that the calculator doesn’t know about. Your employer’s payroll figure is the one that counts.
This calculator provides estimates for general information only and is not tax, payroll or financial advice. Tax rules vary by country and change often. For decisions that matter, please check with your employer’s payroll team, a tax authority or a qualified accountant.