How it works
Gross pay is what your contract says. Tax takes a slice, and other deductions (pension, health insurance, student loans) take more. What is left is your take-home pay — the number that actually reaches your bank account.
This calculator uses one blended tax rate as an estimate. Real payroll tax uses bands and allowances, so treat the result as a planning figure and check your payslip for the exact number.
Formula
Net pay = gross pay × (1 − tax rate) − other deductions. Monthly net = annual net ÷ 12.
What each input means
- Gross annual salary: Your gross salary for the year, before tax and deductions.
- Effective tax rate: Your estimated effective tax rate as a percentage. If you paid $14,400 of tax on $72,000 last year, your rate was 20%.
- Other annual deductions: Other annual deductions: pension contributions, health insurance, student loan repayments.
Worked example: $72,000 gross, 20% tax, $3,600 deductions
- Gross salary: $72,000 per year
- Tax: $72,000 × 20% = $14,400
- Other deductions: $3,600
- Take-home pay: $72,000 − $14,400 − $3,600 = $54,000 per year
- Monthly take-home pay: $54,000 ÷ 12 = $4,500
Frequently asked questions
Why is this only an estimate?
Real tax is charged in bands, and allowances differ by country and by personal situation. A single blended rate cannot capture that. Use your last payslip's effective rate for the closest estimate.
What counts as “other deductions”?
Anything taken from your pay after tax: pension or retirement contributions, health insurance premiums, student loan repayments, and union dues.
How do I find my effective tax rate?
Divide the total tax on your last annual tax statement by your gross income. If you paid $14,400 on $72,000, your effective rate is 20%.
Does this include employer contributions?
No. Employer pension or insurance contributions are not part of your gross pay and are not deducted here.