Weekly
Bi-weekly (Every 2 weeks)
Semi-monthly (Twice a month)
Monthly
Gross Pay:$0.00
FICA (Social Security + Medicare 7.65%):-$0.00
Federal Tax:-$0.00
State Tax:-$0.00
Other Deductions (Total):-$0.00
Estimated Take-Home Pay:$0.00
Understanding Your Paycheck: Gross vs. Net Pay
When you receive a job offer, the salary mentioned is almost always the Gross Pay. This is the total amount of money earned before any taxes or mandatory contributions are removed. However, the amount that actually lands in your bank account is your Net Pay, also known as take-home pay.
How Paychecks Are Calculated
Calculating your paycheck involves several layers of subtractions from your base earnings. The general formula is:
Net Pay = Gross Pay – (FICA Taxes + Federal Income Tax + State Income Tax + Benefit Deductions)
FICA Taxes: This consists of Social Security (6.2%) and Medicare (1.45%), totaling 7.65% for most employees.
Federal Withholding: This is based on your tax bracket, filing status (Single, Married), and the information provided on your W-4 form.
State Withholding: This varies significantly by location; some states have a flat tax, some progressive, and some have no income tax at all.
Pre-tax Deductions: Contributions to a 401(k), 403(b), or Health Savings Account (HSA) reduce your taxable income.
Post-tax Deductions: Items like Roth 401(k) contributions or some life insurance premiums are taken out after taxes have been calculated.
Real-World Example Calculation
Imagine you earn $2,500 every two weeks (bi-weekly):
Gross Pay: $2,500.00
Pre-tax 401k (4%): $100.00 (Taxable income becomes $2,400)
FICA Tax (7.65% of $2,500): $191.25
Federal Tax (est. 12% of $2,400): $288.00
State Tax (est. 5% of $2,400): $120.00
Health Insurance (Post-tax): $50.00
Total Take-Home: $1,750.75
Why Use a Paycheck Calculator?
Using a paycheck calculator is essential for financial planning. Whether you are considering a new job offer, planning for a raise, or adjusting your 401(k) contributions, knowing your exact take-home pay allows you to build an accurate monthly budget. It helps prevent "sticker shock" when you see the difference between your annual salary and your actual bank deposits.
function calculatePaycheck() {
var grossPay = parseFloat(document.getElementById("grossPay").value);
var fedTaxRate = parseFloat(document.getElementById("fedTax").value) / 100;
var stateTaxRate = parseFloat(document.getElementById("stateTax").value) / 100;
var preTax = parseFloat(document.getElementById("preTaxDeductions").value);
var postTax = parseFloat(document.getElementById("postTaxDeductions").value);
if (isNaN(grossPay) || grossPay <= 0) {
alert("Please enter a valid Gross Pay amount.");
return;
}
// FICA is calculated on gross pay (usually)
var ficaRate = 0.0765;
var ficaAmount = grossPay * ficaRate;
// Taxable income for income taxes is usually Gross – PreTax Deductions
var taxableIncome = grossPay – preTax;
if (taxableIncome < 0) taxableIncome = 0;
var fedTaxAmount = taxableIncome * fedTaxRate;
var stateTaxAmount = taxableIncome * stateTaxRate;
var totalDeductions = preTax + postTax;
var netPay = grossPay – ficaAmount – fedTaxAmount – stateTaxAmount – totalDeductions;
if (netPay < 0) netPay = 0;
// Update Display
document.getElementById("resGross").innerText = "$" + grossPay.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resFica").innerText = "-$" + ficaAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resFed").innerText = "-$" + fedTaxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resState").innerText = "-$" + stateTaxAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resDeductions").innerText = "-$" + totalDeductions.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resNet").innerText = "$" + netPay.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("result").style.display = "block";
}