How to use it
- Use the formula below with your own figures.
The formula
Net pay = gross per period − deductions.
Worked example
Splitting salary by pay periods shows each check.
Frequently asked questions
Weekly vs monthly?
Same annual pay, different per-check amounts.
What's deducted?
Tax, contributions and any benefits.
Tips
- Know your marginal vs effective rate.
- Set money aside as you earn if tax isn't withheld.
- Keep receipts for anything deductible.
Key terms
- Marginal rate
- The rate on your top slice of income.
- Effective rate
- Your overall average tax rate.
- Deduction
- An amount subtracted from taxable income.