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Salary Calculator: Gross to Net

How much will you actually take home? Estimate your Net Salary after tax deductions and plan your finances better.

USA ($) Mode
$
5K2M
0.1%12%

Net Take-Home Pay

$42,500
Total Deductions$7,500
Monthly Pay$3,542

Deduction Breakup

Where Does the Money Go?

Understanding the gap between your offer letter (Gross Salary) and your bank account (Net Salary) is crucial for financial planning. Taxes, social security, and insurance often take a significant chunk out of your paycheck.

Use this calculator to negotiate better. When discussing salary, always think in terms of "Net" (Take-Home) rather than just "Gross" to ensure your lifestyle needs are met.

The Calculation Logic

Net = Gross - (Gross × Tax%)
  • Net = Take-Home Pay
  • Gross = Total Pre-Tax Income
  • Tax% = Effective Tax Rate (Income Tax + Social Security)

Gross Income (CTC)

The big number on your contract. Includes base pay, bonuses, housing allowance, and employer contributions.

Net Income (In-Hand)

The money you can actually spend. This is Gross Income minus Taxes, Insurance, and Retirement contributions.

Plan Your Finances

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Frequently Asked Questions

What is Gross vs Net Salary?
Gross Salary is your total compensation (CTC) stated in your contract before any deductions. Net Salary is the actual 'Take-Home' amount deposited into your bank account after Income Tax, social security/PF, and insurance premiums are removed.
How is the Tax calculated here?
This tool estimates your tax liability based on the 'Effective Tax Rate' you enter. For example, if you earn $100,000 and input a 20% tax rate, the calculator deducts $20,000 to show your net pay.
Does this work for multiple countries?
Yes. The calculator detects your currency settings. For India, it handles high figures (Lakhs/Crores). For the USA, UK, and Europe, it handles standard thousands/millions formatting automatically.
Is this accurate for official tax filing?
This is an estimation tool designed for financial planning and salary negotiation. For exact tax filing, you should consult a certified accountant or use official government portals.

Disclaimer: This tool provides estimates based on effective tax rates. Actual tax liability depends on your country's specific tax slabs, deductions, and exemptions.