Calculate net pay and the true cost of payroll. This free payroll calculator shows an employee’s take-home pay, taxes withheld and the total cost to the employer per pay period.
Estimate only. You enter the tax rates, since payroll taxes vary by country, state and filing status.
Use this free payroll calculator to work out an employee’s net pay and the full cost to the employer. Enter the gross pay, pay frequency and tax rates to see take-home pay, taxes withheld and total payroll cost.
A payroll calculator turns an employee’s gross pay into net pay and shows the employer’s side too. Enter gross pay per period, the pay frequency and your tax rates, and it returns employee net pay, employee taxes, employer payroll tax and the total cost to the employer.
Important: payroll tax rates vary by country, state and filing status, so this tool uses rates you enter. In the US the employer’s share of Social Security and Medicare is commonly 7.65%, on top of the employee’s withholding.
Net pay = Gross − Pre-tax deductions − Employee taxes Employer cost = Gross + Employer payroll tax
For a $2,500 bi-weekly gross at 22% employee tax, net pay is $1,950. With a 7.65% employer tax, the company pays an extra $191, for a total cost of $2,691 per period.
| Term | What it means |
|---|---|
| Gross pay | Total pay before deductions. |
| Employee taxes | Income tax and the employee share of payroll tax. |
| Net pay | What the employee actually receives. |
| Employer payroll tax | Taxes the employer pays on top of wages. |
| Total cost | Gross pay plus the employer’s payroll tax. |
Subtract pre-tax deductions and taxes from gross pay: Net = Gross − pre-tax deductions − employee taxes. On $2,500 bi-weekly at 22% withholding, net pay is $1,950.
More than the wage. On top of gross pay, employers owe payroll taxes (in the US, commonly 7.65% for Social Security and Medicare) plus any benefits. A $2,500 gross with 7.65% employer tax costs about $2,691.
Payroll taxes vary by country, state, wage caps and filing status, so there's no single formula. Entering your own employee and employer rates keeps the estimate accurate for your situation.
Employee taxes are withheld from the worker's pay and reduce their take-home. Employer payroll taxes are paid by the company on top of wages and add to the cost of employment.
Pre-tax deductions like retirement or health contributions are taken before tax, lowering taxable pay and therefore the taxes withheld, as well as the employee's net pay.
Yes, this payroll calculator is completely free, needs no sign-up, and gives instant results directly in your browser.