Calculate your actual take-home pay after taxes and deductions.
Your Income Breakdown
Total Annual Net Income:$0.00
Monthly Take-Home:$0.00
Total Taxes Paid:$0.00
Total Voluntary Deductions:$0.00
Understanding Net Income vs. Gross Income
Calculating your Net Income is essential for effective personal budgeting. While your salary (Gross Income) looks high on paper, it doesn't represent the money that actually hits your bank account. Net income is the "take-home pay" remaining after all mandatory taxes and voluntary deductions are removed.
How the Calculation Works
The formula for Net Income is relatively straightforward, but requires accurate data for each component:
Net Income = Gross Income – (Federal Taxes + State Taxes + FICA) – (Health Insurance + Retirement Contributions)
Key Components Explained:
Gross Income: Your total pay before any taxes or deductions are taken out.
FICA: This covers Social Security and Medicare taxes. For most employees, this is a fixed rate of 7.65%.
Pre-tax Deductions: Items like 401(k) contributions or health insurance premiums often reduce your taxable income, meaning you pay less in federal tax.
State and Federal Tax: These vary based on your location and your specific tax bracket.
Example Scenario
If you earn $60,000 annually:
– Federal Tax (12% approx): $7,200
– FICA (7.65%): $4,590
– State Tax (5%): $3,000
– Health Insurance: $2,000
Total Net Income: $43,210
Monthly Net: $3,600.83
Knowing this number allows you to plan your rent, car payments, and savings goals based on actual cash flow rather than theoretical earnings.
function calculateNetPay() {
var gross = parseFloat(document.getElementById('grossIncome').value);
var fedRate = parseFloat(document.getElementById('federalTax').value) || 0;
var stateRate = parseFloat(document.getElementById('stateTax').value) || 0;
var ficaRate = parseFloat(document.getElementById('ficaTax').value) || 0;
var health = parseFloat(document.getElementById('healthInsurance').value) || 0;
var retire = parseFloat(document.getElementById('retirement').value) || 0;
if (isNaN(gross) || gross <= 0) {
alert("Please enter a valid Gross Annual Income.");
return;
}
// Tax calculations based on gross
var fedTaxAmount = gross * (fedRate / 100);
var stateTaxAmount = gross * (stateRate / 100);
var ficaTaxAmount = gross * (ficaRate / 100);
var totalTaxes = fedTaxAmount + stateTaxAmount + ficaTaxAmount;
var totalDeductions = health + retire;
var netAnnual = gross – totalTaxes – totalDeductions;
var netMonthly = netAnnual / 12;
// Update UI
document.getElementById('annualNet').innerText = "$" + netAnnual.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('monthlyNet').innerText = "$" + netMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalTaxes').innerText = "$" + totalTaxes.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalDeductions').innerText = "$" + totalDeductions.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultArea').style.display = 'block';
}