What This Calculator Does
This tool estimates your take-home (net) pay in the United States when you are paid by the hour. Enter your hourly rate, hours per pay period, and your federal and state tax percentages, and it subtracts taxes and deductions to show what actually lands in your bank account. This calculator uses US payroll assumptions, including the standard FICA rate of 7.65% (6.2% Social Security + 1.45% Medicare). It is an estimate only and does not account for tax brackets, allowances, wage caps, or local taxes.
How to Use It
Enter your hourly rate and the number of hours in one pay period (for example, 80 hours for a two-week biweekly period). Provide a federal income tax percentage and a state income tax percentage that reflect your situation — your most recent pay stub is the easiest source. Add any other per-period deductions such as health insurance premiums, 401(k) contributions, or union dues. The result shows your gross pay, each deduction, and your final net pay.
The Formula Explained
First, gross pay is hourly rate times hours: \(\text{Gross} = \text{Rate} \times \text{Hours}\). Federal and state taxes are applied as a percentage of gross. FICA is a flat 7.65% of gross. Net pay is what remains: $$\text{Net} = \text{Gross} - \text{Federal} - \text{FICA} - \text{State} - \text{Other}$$
Worked Example
Suppose you earn $25/hour and work 80 hours: gross = $2,000. With 12% federal ($240), 7.65% FICA ($153), and 5% state ($100), plus $50 other deductions, your net pay is $$\$2{,}000 - \$240 - \$153 - \$100 - \$50 = \mathbf{\$1{,}457}$$ per pay period.
FAQ
Is FICA always 7.65%? For most employees, yes — until you exceed the annual Social Security wage base, after which only the 1.45% Medicare portion applies (plus a possible 0.9% surtax on high earners). This calculator uses the flat 7.65%.
What federal percentage should I enter? Use your effective withholding rate from a recent pay stub (federal tax withheld ÷ gross), since exact withholding depends on your W-4 and tax brackets.
Does this include benefits or overtime? No automatic overtime is applied — include overtime in your hours/rate manually. Put benefit premiums in "Other Deductions."
