Salary calculator
Gross salary is the number in the offer letter. Take-home is the number that reaches your account. This works out the gap, using deduction rates you supply — which means it works in any country rather than assuming one tax code.
Built and checked by Mubashir, who works in accounting and finance. Formula and sources shown below. Not financial advice.
Your salary
Annual take-home pay
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Monthly
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Per fortnightly cheque
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Total deducted
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Effective deduction rate
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Show the working
—Why this asks for rates instead of a country
Most take-home calculators hard-code one country's tax brackets, which makes them useless everywhere else and stale within a year of the next budget. This one takes the rates from you, so it works whether you are on PAYE in Britain, a graduated slab in Pakistan, or a combined federal and state burden in the United States.
The trade-off is that you need to know your rates. If you do not, your most recent payslip is the fastest source — divide each deduction line by your gross pay for that period.
Marginal against effective rates
This is where salary arithmetic misleads people, and it matters most when you are weighing a raise.
Almost every income tax system is progressive: the first slice of income is taxed at a low rate, the next slice higher, and so on. Your marginal rate is what applies to your next unit of earnings. Your effective rate is total tax divided by total income, and it is always lower.
Someone in a 30% bracket does not pay 30% of their salary. They might pay 18% overall, because most of their income sat in lower bands. For this calculator, enter your effective rate to see accurate take-home, and your marginal rate if you are working out what a raise is actually worth.
This also settles a persistent myth: a raise that moves you into a higher bracket cannot reduce your take-home pay. Only the income above the threshold is taxed at the higher rate.
What sits in "other deductions"
Social security or national insurance contributions, pension or provident fund payments, health insurance premiums, union dues, and student loan repayments where these are collected at source.
Some of these are worth distinguishing. Pension contributions are not lost — they are deferred compensation, often with an employer match, and frequently deducted pre-tax so their real cost to you is less than the headline figure. The default of 7.65% is the US combined Social Security and Medicare rate; replace it with whatever applies to you.
Reading the fortnightly figure
The calculator divides by 26 for fortnightly pay, not 24. Those are different: 26 fortnights covers 52 weeks, while 24 semi-monthly payments split the year into halves of each month. If you are paid twice a month rather than every two weeks, use the monthly figure divided by two.
People on a 26-period cycle receive three paycheques in two months of the year. Budgeting on the monthly figure and treating those extra cheques as surplus is a reasonable way to handle it.
Not tax advice. This applies flat rates you supply and does not model progressive brackets, allowances, credits, or local variations. Your actual payslip is the authority. Consult a qualified tax professional for filing decisions.
Frequently asked questions
What is the difference between gross and net salary?
Gross is your total pay before anything is deducted. Net, or take-home, is what remains after tax and other deductions and is the amount that reaches your bank account.
What tax rate should I enter?
Your effective rate — total tax paid divided by gross income — gives the most accurate take-home figure. Your most recent payslip is the quickest source if you do not know it.
Will a raise push me into a higher bracket and cost me money?
No. Progressive systems tax only the income above each threshold at the higher rate, so a raise always increases take-home pay even when it crosses a bracket.
Why divide by 26 for fortnightly pay?
Because there are 26 fortnights in a year. Being paid twice a month is different — that is 24 periods, and you should use the monthly figure halved instead.
Are pension contributions really a deduction?
They reduce your take-home pay but they are not a cost in the way tax is. The money is yours, often matched by your employer, and frequently deducted before tax.
Does this work outside the United States?
Yes. Because you supply the rates rather than selecting a country, it works anywhere. Enter your national tax rate in the first field and leave the state field at zero if it does not apply.