Gross vs Net Salary Calculator 2026: Where Does Your Money Go?
The difference between gross and net salary is where financial reality meets expectation. Gross salary is the total amount your employer pays you before any deductions. Net salary — your actual take-home pay — is what remains after federal income tax, state income tax, Social Security (6.2%), Medicare (1.45%), health insurance premiums, retirement contributions, and any other payroll withholdings. For most Americans, the gap between gross and net ranges from 25% to 40% of gross pay.
Understanding this gap is crucial because nearly every financial obligation is paid from your net salary, yet most financial discussions reference gross figures. Job offers quote gross salary. The news reports median gross income. But your rent, groceries, car payment, and student loans all come out of net pay. A $90,000 gross salary translates to roughly $5,000-$5,600 in monthly take-home pay depending on your state and deductions — substantially less than the $7,500 gross monthly figure.
This calculator breaks down the gross-to-net conversion across all pay frequencies and provides both unadjusted and adjusted figures. Use it to bridge the gap between what you earn on paper and what you actually receive, so you can make financial decisions based on real numbers rather than headline salary figures.
Key Data & Statistics
| Metric | Value |
|---|---|
| Average Gross-to-Net Ratio | 60-75% (depending on income & state) |
| Federal Income Tax | 10-37% (7 marginal brackets) |
| Social Security | 6.2% (up to $168,600 wage base) |
| Medicare | 1.45% (+ 0.9% over $200K) |
| Average State Tax | 0-6% (9 states have 0%) |
| Health Insurance (avg employee) | $3,000-$7,000/year |
| 401(k) Contribution (avg) | 6-8% of gross |
Pre-Calculated Examples
| Scenario | Gross | Net / Result | Details |
|---|---|---|---|
| $50K Gross | $50,000 | $39,500 net | Gross-to-net ratio: 79% | Deductions: ~$10,500 |
| $80K Gross | $80,000 | $58,400 net | Gross-to-net ratio: 73% | Deductions: ~$21,600 |
| $120K Gross | $120,000 | $83,400 net | Gross-to-net ratio: 69.5% | Deductions: ~$36,600 |
| $180K Gross | $180,000 | $119,700 net | Gross-to-net ratio: 66.5% | Deductions: ~$60,300 |
Calculate Your Salary
Salary Information
Enter your salary information to see all pay frequency conversions
Who Uses This Calculator?
Job offer reality check
Convert a gross salary offer to net take-home pay before accepting, so you know exactly what your paycheck will look like on day one.
Deduction audit
Compare your actual paycheck deductions against expected amounts to catch errors in tax withholding, insurance premiums, or retirement contributions.
Raise negotiation
When negotiating a raise, calculate how much of the increase you actually keep after taxes. A $10,000 raise at the 22% federal bracket plus FICA nets you only about $6,200.
Financial literacy
Understand the full deduction chain from gross to net salary to make informed decisions about tax planning, benefits elections, and compensation structure.