Gross pay is the total you earn in a pay period before anything is taken out. Net pay, or take-home pay, is what is left after taxes and other deductions. Every calculator on this site estimates gross pay. That is deliberate: gross pay follows directly from your hours and rate, while net pay depends on your tax situation and benefit choices.
How to calculate gross pay
For hourly work:
Gross pay = regular hours × rate + overtime hours × rate × overtime multiplier + other earnings
For a salary:
Gross pay per paycheck = annual salary ÷ number of paychecks per year
“Other earnings” can include bonuses, commissions, tips you report to your employer, holiday pay, and shift differentials.
Example
You are paid every two weeks at $22.50 an hour. You worked 80 regular hours and 6 overtime hours and earned a $150 bonus.
| Earning | Calculation | Amount |
|---|---|---|
| Regular pay | 80 × $22.50 | $1,800.00 |
| Overtime pay | 6 × $22.50 × 1.5 | $202.50 |
| Bonus | $150.00 | |
| Gross pay | $2,152.50 |
What comes out between gross and net
The exact amounts depend on your income, filing status, state, and choices, so this guide does not quote rates. Typical deductions are:
- Federal income tax withholding, based on your W-4 form.
- Social Security and Medicare taxes (often shown as FICA or OASDI and Medicare).
- State and local income tax, where they apply.
- Pre-tax deductions, such as many health insurance premiums and traditional 401(k) contributions. These lower your taxable wages.
- After-tax deductions, such as Roth 401(k) contributions, some insurance, union dues, or wage garnishments.
Reading your pay stub
- Find the earnings section. Check hours, rates, and each type of pay. This is where time card mistakes show up.
- Check gross pay. It should match your own calculation.
- Review taxes and deductions.
- Confirm net pay and the year-to-date totals.
If gross pay looks wrong, compare your hours with the time card calculator and your rate and extras with the gross pay calculator. If withholding looks wrong, the IRS Tax Withholding Estimator, linked below, helps you check your W-4.
Why we don’t estimate take-home pay yet
Accurate take-home pay needs current federal, state, and local tax tables, which change every year. Rather than show numbers we can’t keep exactly right, we focus on gross pay and send you to official tools for withholding.
Sources
- Internal Revenue Service, Tax Withholding Estimator
- U.S. Department of Labor, Fact Sheet #56A: Overview of the Regular Rate of Pay Under the FLSA
About this guide. Written for US employees as general information, not legal or tax advice. Rules can differ by state, employer, and contract. See our methodology and disclaimer.