function calculateTakeHome() {
var gross = parseFloat(document.getElementById('grossPay').value);
var period = document.getElementById('payPeriod').value;
var taxRate = parseFloat(document.getElementById('taxPercentage').value) || 0;
var insurance = parseFloat(document.getElementById('insuranceCost').value) || 0;
var retirement = parseFloat(document.getElementById('retirementContrib').value) || 0;
var other = parseFloat(document.getElementById('otherDeductions').value) || 0;
if (isNaN(gross) || gross <= 0) {
alert("Please enter a valid Gross Income amount.");
return;
}
var periodsPerYear;
if (period === 'annual') periodsPerYear = 1;
else if (period === 'monthly') periodsPerYear = 12;
else if (period === 'biweekly') periodsPerYear = 26;
else if (period === 'weekly') periodsPerYear = 52;
var annualGross = gross * periodsPerYear;
var annualTaxes = annualGross * (taxRate / 100);
var annualFixedDeductions = (insurance + retirement + other) * periodsPerYear;
var totalAnnualNet = annualGross – annualTaxes – annualFixedDeductions;
var totalMonthlyNet = totalAnnualNet / 12;
var perPaycheckNet = totalAnnualNet / periodsPerYear;
var totalAnnualDeductions = annualTaxes + annualFixedDeductions;
document.getElementById('annualNet').innerText = "$" + totalAnnualNet.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('monthlyNet').innerText = "$" + totalMonthlyNet.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('periodNet').innerText = "$" + perPaycheckNet.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalDeductionsDisplay').innerText = "$" + totalAnnualDeductions.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('results-panel').style.display = 'block';
}
Understanding Your Net Income
Net income, commonly referred to as "take-home pay," is the actual amount of money an individual receives after all taxes and deductions have been subtracted from their gross pay. While your salary (gross income) is the headline figure in an employment contract, the net income is the most critical number for personal budgeting and financial planning.
The Net Income Formula
Net Income = Gross Income – (Taxes + Mandatory Deductions + Voluntary Deductions)
Common Deductions That Impact Your Paycheck
Federal and State Income Tax: The percentage of your earnings that goes to the government based on your tax bracket.
FICA Taxes: Social Security and Medicare contributions, which are typically withheld at a standard rate.
Health Insurance Premiums: Costs for medical, dental, and vision insurance provided by your employer.
Retirement Contributions: Pre-tax or post-tax contributions to accounts like a 401(k) or 403(b).
Other Withholdings: This can include life insurance, disability insurance, or flexible spending accounts (FSA).
Practical Example
Suppose you earn a gross annual salary of $60,000. You live in a state with a total effective tax rate of 20%. You also pay $200 per month for health insurance and contribute 5% to your retirement fund.
Annual Gross: $60,000
Taxes (20%): -$12,000
Health Insurance ($200 x 12): -$2,400
Retirement (5% of $60k): -$3,000
Final Net Income: $42,600 per year ($3,550 per month)
Why Use This Calculator?
Whether you are considering a new job offer or planning a major purchase, knowing your net income prevents financial overextension. Many people make the mistake of budgeting based on their gross pay, only to realize their actual disposable income is significantly lower due to the "hidden" costs of employment benefits and tax obligations.