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Gross to Net Calculator

Calculate take-home pay from gross salary after taxes and deductions

Calculate Gross to Net

Total amount before taxes and deductions

Take-home amount after taxes and deductions

Tax percentage based on gross amount

Tax percentage based on net amount

Absolute tax amount (gross - net)

How to Use:

Enter any 2 values from the fields above, and the calculator will automatically calculate the remaining values. You can use gross amount + tax rate, net amount + tax rate, or any other combination of two values.

Example Calculations

Example 1: Calculate Net from Gross

Given: Gross salary = $5,000, Tax rate = 25%

Net Amount: $5,000 × (1 - 0.25) = $5,000 × 0.75 = $3,750

Tax Amount: $5,000 - $3,750 = $1,250

Example 2: Calculate Gross from Net

Given: Net salary = $3,000, Tax rate = 20%

Gross Amount: $3,000 ÷ (1 - 0.20) = $3,000 ÷ 0.80 = $3,750

Tax Amount: $3,750 - $3,000 = $750

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FICA Tax Information

SS

Social Security

6.2% on wages up to $160,200 (2023)

MC

Medicare

1.45% on all wages

+

Additional Medicare

0.9% on wages over $200,000

Key Concepts

Gross Amount: Total salary before any deductions

Net Amount: Take-home pay after taxes and deductions

Tax from Gross: Tax percentage based on gross amount

Tax from Net: Tax percentage based on net amount (higher %)

Self-employed: Pay both employee and employer FICA (15.3%)

Understanding Gross vs Net Calculations

What's the Difference?

The fundamental difference between gross and net amounts is that the gross amount includes taxes and deductions, while the net amount is what you actually receive after all deductions have been subtracted.

Common Deductions

  • Federal income tax
  • State income tax
  • Social Security tax (6.2%)
  • Medicare tax (1.45%)
  • Health insurance premiums
  • Retirement contributions (401k, etc.)

Calculation Formulas

Net from Gross:

Net = Gross × (1 - Tax Rate)

Gross from Net:

Gross = Net ÷ (1 - Tax Rate)

Tax Rate Conversion

Tax from Gross to Tax from Net:

Tax from Net = Tax from Gross ÷ (1 - Tax from Gross)

Tax from Net to Tax from Gross:

Tax from Gross = Tax from Net ÷ (1 + Tax from Net)

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