Salary calculator
Gross salary is the figure in your offer letter. Take-home pay is what actually reaches your bank account. Enter your pay per hour, week, fortnight, month or year, add the deduction rates that apply to you, and see your take-home pay for the year, the month and each fortnight.
Uses a standard published formula, explained below. Everything is calculated in your browser, and nothing you enter is sent to a server. This is not financial advice.
Your salary
Annual take-home pay
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Monthly
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Per fortnightly check
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Total deducted
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Effective deduction rate
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Show the working
—Need the income tax figure? This calculator uses a tax rate you enter. To work out the income tax on a salary from the official slabs, use Fintooliq's income tax calculator. It covers Pakistan, the USA, the UK, the UAE, Canada and Australia.
Converting hourly, weekly and monthly pay
Whatever period you choose, the calculator first converts your pay into a yearly figure and then works out the monthly and fortnightly amounts from it. Hourly pay assumes a 40-hour week for 52 weeks, which is 2,080 hours a year. Weekly pay is multiplied by 52, fortnightly pay by 26 and monthly pay by 12.
To use it purely as a converter, for example to turn an hourly rate into a monthly salary, leave all the deduction boxes at zero. The take-home figures will then equal your gross pay for each period.
If you work fewer or more hours than 40 a week, multiply your hourly rate by your weekly hours and enter the result as a weekly figure instead.
Why it asks for your rates instead of your country
Most take-home pay calculators are built around one country's tax brackets. That makes them useless everywhere else, and they go out of date with every new budget. This one uses the rates you enter, so it works whether you pay tax under a salary slab system in Pakistan, PAYE in the UK or federal and state tax in the United States.
The trade-off is that you need to know your rates. If you do not, your latest payslip is the quickest source: divide each deduction by your gross pay for that period. To work out income tax on a salary from the official slabs, use a dedicated tax calculator such as Fintooliq's income tax calculator, which covers Pakistan, the USA, the UK, the UAE, Canada and Australia.
Marginal and effective tax rates
This is where salary calculations most often mislead people, especially when they are thinking about a pay rise.
Almost every income tax system is progressive: the first part of your income is taxed at a low rate, the next part at a higher rate, and so on. Your marginal rate is the rate on the next unit you earn. Your effective rate is your total tax divided by your total income, and it is always lower.
Someone in a 30% tax bracket does not pay 30% of their whole salary. They might pay 18% overall, because most of their income falls into lower bands. In this calculator, enter your effective rate to see your actual take-home pay, and your marginal rate to see what a raise would really be worth.
This also settles a common myth: a raise that moves you into a higher tax bracket cannot reduce your take-home pay. Only the income above the threshold is taxed at the higher rate.
What goes into "other deductions"
This box covers everything else taken from your pay before it reaches you, such as social security, pension or provident fund contributions, health insurance premiums and loan repayments collected through payroll.
Pension contributions are worth thinking about separately. They reduce your take-home pay, but the money is still yours. It is often matched by your employer, and it is frequently deducted before tax, so the real cost to you is lower than it looks. In the United States, the combined Social Security and Medicare rate for employees is 7.65%.
Fortnightly pay and twice-monthly pay are different
The calculator divides yearly pay by 26 for the fortnightly figure, because there are 26 two-week periods in a year. Being paid twice a month is different: that is 24 payments a year. If you are paid twice a month, divide the monthly figure by two instead.
If you are paid every two weeks, two months each year will contain three paydays. A practical way to budget is to plan around the monthly figure and treat those extra paydays as a bonus.
Not tax advice. This calculator applies the flat rates you enter. It does not model tax brackets, allowances, credits or local rules. Your payslip is the final authority, and a qualified tax adviser should handle anything you file.
Frequently asked questions
How do I convert an hourly wage to a monthly salary?
Multiply your hourly rate by 2,080, the number of hours in a year at 40 hours a week, then divide by 12. For example, 20 an hour is 41,600 a year, or about 3,467 a month. Choose “per hour” in the calculator and it does this for you.
What is the difference between gross and net salary?
Gross salary is your total pay before any deductions. Net salary, or take-home pay, is what is left after tax and other deductions, and it is the amount that reaches your bank account.
What tax rate should I enter?
Enter your effective rate, which is the total tax you pay divided by your gross income. It gives the most accurate take-home figure, and your latest payslip is the quickest way to find it.
Can a pay rise push me into a higher tax bracket and cost me money?
No. Progressive tax systems only charge the higher rate on income above each threshold, so a pay rise always increases your take-home pay, even when it crosses into a new bracket.
Why does the calculator divide by 26 for fortnightly pay?
Because there are 26 fortnights in a year. Being paid twice a month is different, with 24 payments a year, so in that case divide the monthly figure by two.
Does this calculator work outside the United States?
Yes. You enter the rates yourself instead of choosing a country, so it works anywhere. Enter your national income tax rate in the first box and leave the state or provincial box at zero if it does not apply to you.