Payroll Calculator — Gross to Net Pay

🧾 Pay Details

Hourly Rate

Hours per Pay Period

Pay Periods per Year

Deductions

Combined Federal + State Tax Rate (%)

FICA Rate (%)

Other Pre-Tax Deductions (per period)

About the Payroll Calculator

The Payroll Calculator estimates gross-to-net pay for both hourly and salaried employees, showing what an employee actually takes home after taxes and deductions. It's built for small business owners running payroll themselves, HR teams sanity-checking a paycheck, and employees who want to understand where their money goes each pay period. This is a simplified US-style estimate for planning purposes — consult a licensed payroll provider or accountant for exact withholding figures specific to your state and situation.

How It Works

For hourly employees, gross pay per period is hourly rate multiplied by hours worked in that pay period. For salaried employees, gross pay per period is annual salary divided by the number of pay periods per year (weekly, biweekly, semimonthly, or monthly). From gross pay, the calculator subtracts pre-tax deductions like 401(k) contributions or health insurance premiums to find taxable income, then applies your combined federal+state tax rate and the FICA rate (7.65% by default) to estimate withholding. Post-tax deductions are subtracted last to arrive at net pay — the amount actually deposited into the employee's account.

Why It Matters

Knowing the gap between gross pay and net pay helps employees budget realistically and helps employers set offer amounts that translate into a take-home number candidates will find attractive. It also helps you quickly compare pay frequencies — the same annual salary looks different per paycheck depending on whether you're paid weekly, biweekly, semimonthly, or monthly, even though the annualized net pay stays roughly the same.

Tips for Accurate Results

Use your actual pre-tax deduction amounts (401k, health insurance, HSA) since these reduce taxable income before tax is applied.
The combined tax rate is a flat estimate — real withholding uses progressive tax brackets, so your actual number may differ, especially at higher incomes.
FICA has an annual Social Security wage cap in real payroll systems; this calculator applies the flat rate to every period without capping, which is accurate for most earners below the cap.
Re-run the calculation whenever your pay rate, hours, deduction elections, or pay frequency changes.

Formula

How Net Pay is Calculated

Net pay works backward from gross pay through taxes and deductions.

Net Pay Formula

Net Pay = Gross Pay − Pre-Tax Deductions − Income Tax − FICA Tax − Post-Tax Deductions

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Gross Pay First

Hourly: rate × hours. Salary: annual salary ÷ pay periods per year. This is the starting figure before any tax or deduction is applied.

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Pre-Tax Reduces Taxable Income

401(k) and health insurance deductions come out before tax is calculated, which lowers both your income tax and FICA tax.

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Taxes Come Last

Income tax and FICA are applied to taxable income, then post-tax deductions are subtracted to reach the final net pay figure.

FAQ

Frequently Asked Questions

Common questions about payroll calculations

What is the difference between gross pay and net pay?

Gross pay is your total earnings before any deductions — hourly rate times hours, or annual salary divided by pay periods. Net pay (take-home pay) is what's left after subtracting pre-tax deductions, income tax withholding, FICA taxes, and post-tax deductions.

What is FICA?

FICA (Federal Insurance Contributions Act) tax funds Social Security and Medicare. The standard employee rate is 7.65% of taxable wages (6.2% Social Security up to an annual wage cap, plus 1.45% Medicare with no cap). Your employer pays a matching 7.65% on top of your wages.

Why use a flat estimated tax rate instead of tax brackets?

Real income tax withholding depends on marginal tax brackets, filing status, allowances, and state/local rules, which vary by paycheck and jurisdiction. This calculator uses a single combined federal+state rate as a simplified estimate so you can quickly gauge take-home pay — for exact withholding, use your employer's payroll system or a tax professional.

How does pay frequency affect my per-period amount?

The same annual salary produces a smaller number per paycheck the more often you're paid: weekly (52 periods/year) produces the smallest per-period gross pay, while monthly (12 periods/year) produces the largest. Annualized net pay should be roughly the same regardless of frequency, aside from rounding.

Is this calculator accurate for my specific state and situation?

No — this is a simplified US-style estimate using a single blended tax rate. It does not account for tax brackets, filing status, dependents, state-specific rules, local taxes, or benefit caps. Use it for quick planning only, and consult a payroll provider or accountant for exact withholding figures.

🧾 Payroll Calculator