What is Gross vs Net Salary?
When negotiating a job offer, companies typically quote the Gross Salary. This is the total amount of money the company pays you before any money is taken out.
However, the money that actually lands in your bank account is called your Net Salary (or "Take-Home Pay"). This is your Gross Salary minus:
- Income Tax: Money paid to the government to fund public services.
- Social Security: Contributions for retirement, disability, and sickness benefits.
- Health Insurance: Payments for public healthcare access.
Our calculator helps you bridge the gap, showing you exactly where your money goes and how much you keep.
Hourly vs. Monthly vs. Yearly
Freelancers often think in hourly rates, while salaried employees think in yearly terms. Our tool lets you toggle between:
- Hourly: Best for contractors and part-time workers.
- Monthly: Best for budgeting household expenses.
- Yearly: Best for comparing job offers and long-term planning.
Salary Conversion Examples (2026)
The table below shows common salary conversions across different pay periods and tax scenarios. These examples assume a standard 40-hour workweek (2,080 hours per year) and various effective tax rates.
| Hourly Rate | Weekly (40 hrs) | Monthly | Annual (Gross) | Net (20% Tax) | Net (30% Tax) |
|---|---|---|---|---|---|
| $15.00 | $600 | $2,600 | $31,200 | $24,960 | $21,840 |
| $20.00 | $800 | $3,467 | $41,600 | $33,280 | $29,120 |
| $25.00 | $1,000 | $4,333 | $52,000 | $41,600 | $36,400 |
| $30.00 | $1,200 | $5,200 | $62,400 | $49,920 | $43,680 |
| $50.00 | $2,000 | $8,667 | $104,000 | $83,200 | $72,800 |
| $75.00 | $3,000 | $13,000 | $156,000 | $124,800 | $109,200 |
Monthly amounts assume 4.33 weeks per month. Tax rates are examples only; actual rates vary by location, income level, and filing status. Use your effective tax rate for accurate calculations.
Estimating Net Pay (Take Home)
Your "Take Home" pay is what lands in your bank account after taxes. Since tax rates vary wildly by country (and even state/region), this calculator uses a flat effective tax rate that you provide.
To get an accurate result, check your previous paystub to find your effective tax rate:(Total Tax ÷ Gross Pay) × 100 = Tax Rate %
For long-term financial planning, consider how inflation affects your purchasing power over time, especially when comparing salaries across different years.