What's the difference between net and gross?
Gross pay is the amount before tax is removed. Net pay is the amount left after tax. The tax amount is the difference between the two figures.
A tax percentage based on gross pay is not numerically identical to a markup percentage based on net pay, so select the direction that matches your calculation.
How to use the gross to net calculator
Choose gross to net when you know the gross amount and the percentage deducted from it. Choose net to gross when you know the net amount and the tax percentage measured from net.
Enter the available amount and tax rate. The calculator updates the gross amount, net amount, and tax amount immediately.
FICA taxes
US paychecks may include Social Security and Medicare deductions in addition to income tax. This calculator applies one combined percentage and does not reproduce a complete payroll return.
For payroll planning, combine only deductions that use the same taxable base.
How do I calculate gross given net and tax from net?
When the tax rate applies to gross, recover gross from net with gross = net / (1 - tax rate). For a net amount of $4,000 and a 25% tax rate, gross is $5,333.33.
The tax amount is gross minus net, which is $1,333.33 in this example.
How do I calculate net given gross and tax from gross?
When tax is expressed as a percentage of gross, net equals gross multiplied by one minus the tax rate. A $5,000 gross amount with a 20% deduction produces $4,000 net.
A tax-from-gross rate must stay below 100%, otherwise no positive net amount remains.
FAQs
This percentage converter does not apply tax brackets, allowances, credits, or jurisdiction-specific payroll rules.
Gross-to-net and net-to-gross percentages differ because they use different base amounts. A 20% deduction from gross corresponds to a 25% addition to net.