Gross Pay vs Net Pay:
Understanding Your Paycheck
Ever looked at your pay stub and wondered where all your money went? The difference between gross and net pay is simply the total sum of your taxes and deductions.
The Golden Rule
Gross Pay is the money you technically earned. Net Pay (also known as Take-Home Pay) is the money you actually get to keep and spend.
See Your Net Pay
Income & Deductions
Used by thousands of users to estimate income
Sample Salaries
Net Pay Analysis
- Annual Net
- $56,160
- Taxes Withheld
- -$15,840
- Monthly Cash
- $4,680
- Bi-Weekly Check
- $2,160
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Gross Pay (The Starting Point)
- No taxes computed yet.
- Includes your base salary or hourly wages.
- Includes bonuses, commissions, and overtime pay.
Net Pay (The Final Deposit)
- This is your "Take-Home Pay".
- Federal, State, and FICA taxes deducted.
- Health insurance and 401k removed.
Frequently Asked Questions
Frequently Asked Questions
Gross pay is your total earned income BEFORE any taxes or deductions are taken out. It is the big number on your offer letter or your hourly rate multiplied by hours worked.
Net pay is lower because employers are legally required to withhold Federal Income Tax, State Income Tax, Social Security (6.2%), and Medicare (1.45%). Additionally, voluntary deductions like health insurance premiums and 401(k) contributions are subtracted before you receive your check.
Most landlords and mortgage lenders ask for your Gross Pay when evaluating your debt-to-income (DTI) ratio or verifying that you meet the '3x monthly rent' requirement.