Net Pay Estimator

How to calculate Paycheck calculator?

This calculator estimates your take-home pay by subtracting taxes and deductions from your gross salary and then dividing by your pay frequency.

Key formula: Net_per_period = (annual_gross_salary - (federal_tax_rate/100)*annual_gross_salary - (state_tax_rate/100)*annual_gross_salary - total_annual_deductions) / pay_periods_per_year

Using the Paycheck calculator calculator: an example

Example inputs: $60,000 annual gross, 15% federal tax, 5% state tax, $200/month health, $300/month retirement, paid monthly.

Step-by-step calculation:

• Start with annual gross: $60,000.
• Calculate taxes: federal 15% → $9,000; state 5% → $3,000. Total taxes = $12,000.
• Annual deductions: health $200×12 = $2,400; retirement $300×12 = $3,600; other $100×12 = $1,200. Total deductions = $7,200.
• Compute net annual and per pay: 60,000 − 12,000 − 7,200 = $40,800 annual net. Paid monthly (12): $40,800 / 12 = $3,400 per paycheck.

Frequently Asked Questions

Does the calculator include Social Security and Medicare?

Not automatically. If you want them included, add Social Security (6.2%) and Medicare (1.45%) to your federal rate or list them under Other Deductions.

How should I enter percentage rates?

Enter rates as percentages (for example, 15 for 15%). The formula converts them to decimals by dividing by 100.

Do pre-tax retirement contributions reduce taxable income?

Yes. Traditional 401(k) or similar pre-tax contributions lower taxable income and should be included as deductions to reduce tax amounts.

Can I convert the result to an hourly rate?

Yes. Divide the annual net pay by your annual working hours (for example, 2,080 hours) to estimate an hourly take-home rate.