Salary Details
$
Salary Breakdown
Estimated Annual Income
$20,800.00
Monthly$1,733.33
Weekly$400.00
Daily (8h)$80.00
Hourly$10.00
Gross vs. Net (Est.)
Gross Pay$20,800
Net Pay (Take Home)$15,600
How to Calculate Your Take-Home Pay
Understanding the difference between your gross salary and your actual take-home pay is crucial for financial planning. While your offer letter might show a large number, taxes and deductions will reduce what actually hits your bank account.
Gross vs. Net Salary
Gross salary is your total pay before any deductions. Net salary, or "take-home pay," is what remains after federal, state, and local taxes, Social Security, and Medicare (FICA) are withheld.
Common Deductions include:
- Federal and State Income Tax
- Social Security (6.2%)
- Medicare (1.45%)
- Health Insurance Premiums
- 401(k) or Retirement Contributions
Pay Frequencies Explained
Depending on your employer, you might be paid on different schedules. Weekly (52 paychecks), Bi-weekly (26 paychecks), Semi-monthly (24 paychecks), or Monthly (12 paychecks). Our calculator normalizes these frequencies to show you consistent annual and monthly comparisons.
Frequently Asked Questions
What is the difference between gross and net pay?
Gross pay is the total amount you earn before any taxes or deductions are taken out. Net pay is the amount of money you actually "take home" on your paycheck after all withholdings.
How many working hours are in a year?
A standard full-time work year is typically considered 2,080 hours (40 hours per week × 52 weeks). However, some calculations use 2,000 hours as a simplified baseline.
Is overtime included in these calculations?
This basic calculator does not include overtime premiums (usually 1.5x). It assumes a flat rate for all hours worked. For precise calculations including OT, you should add your average OT earnings to the base salary amount.