Take-Home Pay Calculator

How to calculate net take-home pay?

Net pay is the amount left after subtracting all mandatory and voluntary deductions from your gross earnings, representing the actual cash you receive in your bank account.

Net Pay = Gross Income - Total Deductions

Using the calculator: an example

To illustrate, imagine a scenario where your monthly gross income is $5,000. If your total deductions—including taxes, healthcare, and retirement—sum up to $1,200, your net take-home pay would be $3,800.

1. Identify your total gross monthly earnings before any taxes or contributions.
2. Sum up all mandatory taxes and voluntary benefit contributions.
3. Subtract the total deduction amount from your gross income to find your final net pay.

Frequently Asked Questions

What are common deductions?

Common deductions include federal and state income taxes, Social Security, Medicare, health insurance premiums, and retirement plan contributions such as a 401(k).

Is net pay the same as disposable income?

Not exactly. Net pay is the total on your check, while disposable income is specifically the amount available for spending or saving after personal income taxes have been paid.

How often should I recalculate my take-home pay?

You should recalculate your pay whenever you have a change in salary, update your tax withholding allowances, or change your insurance or retirement benefit selections.