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.
How the Payroll Calculator Works
Every pay period involves two numbers: what the employee actually takes home, and what it really costs the employer once payroll taxes are added. The payroll calculator works out both from a gross pay figure and your own tax rates.
Formula: Net Pay = Gross Pay − Pre-Tax Deductions − (Employee Tax Rate × (Gross Pay − Pre-Tax Deductions)). Total Cost to Employer = Gross Pay + (Employer Payroll Tax Rate × Gross Pay). Annual Gross = Gross Pay × Pay Periods per Year, based on the pay frequency selected.
- Gross pay (per period) — the employee's pay before any taxes or deductions for one pay period
- Pay frequency — how often pay is issued: weekly (52/yr), bi-weekly (26/yr), semi-monthly (24/yr) or monthly (12/yr)
- Employee tax and withholding — the combined tax rate withheld from the employee's taxable pay
- Employer payroll tax — the tax rate the employer pays on top of gross pay, such as employer-side payroll contributions
- Pre-tax deductions (optional) — amounts like retirement contributions or pre-tax benefits subtracted before employee tax is calculated
Example Scenarios
| Gross Pay | Pre-Tax Deductions | Employee Tax Rate | Pay Frequency | Net Pay |
|---|---|---|---|---|
| $2,500 | $0 | 22% | Bi-weekly | $1,950 |
| $1,000 | $100 | 15% | Weekly | $765 |
| $4,000 | $200 | 24% | Semi-monthly | $2,888 |
| $6,000 | $0 | 20% | Monthly | $4,800 |
| $1,500 | $50 | 18% | Bi-weekly | $1,189 |
Payroll Calculator FAQ
What's the difference between employee tax rate and employer payroll tax rate?
Employee tax rate is withheld from the employee's pay and reduces their net pay. Employer payroll tax is an additional cost the employer pays on top of gross pay and never comes out of the employee's paycheck, which is why it only affects total cost to employer.What counts as a pre-tax deduction?
Pre-tax deductions are amounts subtracted from gross pay before the employee tax rate is applied, such as retirement plan contributions or certain insurance premiums. They lower taxable pay, which is why they reduce the tax calculated on that period's paycheck.Does changing pay frequency change the net pay per period?
Not directly — net pay per period is based on the gross pay you enter for that period. Pay frequency changes how many periods there are per year, which is used to calculate the annual gross figure, not the per-period math itself.Why is "total cost to employer" higher than gross pay?
Total cost to employer adds the employer's payroll tax on top of gross pay, since that's a real cost the employer bears in addition to what the employee is paid. It doesn't include other employer costs like benefits, which aren't part of this calculation.Can I use this for contractors as well as employees?
This calculator is built around employer-employee payroll, with separate employee and employer tax rates. Contractors are typically responsible for their own taxes, so the freelance tax calculator is a better fit for that situation.Does this calculator withhold federal, state, and local taxes separately?
No, it uses a single combined employee tax rate that you enter, since actual withholding varies by jurisdiction, filing status and other factors. Combine your expected federal, state and local rates into one figure before entering it.Related Calculators
To check an individual employee's own paycheck outside of a payroll run, try the paycheck calculator or the take-home pay calculator. If you need to compare an annual salary against these per-period figures, the salary calculator can help translate between the two.