Income & Take-Home Pay Calculator
Estimate your actual paycheck after taxes and deductions.
How to Calculate Your Actual Income
Understanding the difference between your gross salary and your net take-home pay is crucial for effective budgeting. Your gross income is the total amount you earn before any taxes or deductions are removed. However, the amount that actually lands in your bank account—your net income—is often significantly lower.
Gross vs. Net Pay: What's the Difference?
Gross Pay: This is the figure stated in your employment contract. If you are offered a $60,000 salary, that is your gross annual pay.
Net Pay: This is your "take-home" pay. It is calculated by taking your gross pay and subtracting federal, state, and local taxes, Social Security contributions (FICA), and voluntary deductions like health insurance premiums or retirement plan contributions (401k).
Common Pay Periods Explained
- Monthly: Paid once a month (12 times per year).
- Semi-Monthly: Paid twice a month (24 times per year), usually on the 1st and 15th.
- Bi-Weekly: Paid every two weeks (26 times per year). This means some months you will receive three paychecks.
- Weekly: Paid once a week (52 times per year).
Example Calculation
If you earn a gross annual salary of $50,000 and are paid bi-weekly:
- Gross per period: $50,000 / 26 = $1,923.08
- Tax (Estimated 20%): $1,923.08 * 0.20 = $384.62
- Deductions (e.g., Insurance): $100.00
- Net Take-Home: $1,923.08 – $384.62 – $100.00 = $1,438.46
Why Use This Calculator?
Financial planning requires knowing your cash flow. By using this tool, you can accurately forecast your monthly budget, determine how much rent or mortgage you can afford, and set realistic savings goals based on money that actually exists in your pocket, not just your contract.