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Paycheck Calculator — Step-by-Step Solutions

The Paycheck Calculator estimates your net take-home pay after taxes and deductions. It supports four modes: gross-to-net for hourly workers, gross-to-net for salaried employees, hourly-to-annual wage conversion, and overtime pay calculation.

Enter your pay rate and filing details to see estimated federal tax, state tax, Social Security, Medicare, and your final take-home amount. Results update instantly as you adjust inputs.

This is an estimate. Actual paycheck may vary based on state taxes, deductions, and benefits.

Your calculations will appear here

How to Use the Paycheck Calculator

  1. Select a calculation mode: Gross to Net (Hourly), Gross to Net (Salary), Hourly/Annual Conversion, or Overtime Calculator.
  2. Enter your pay rate, hours per week, pay frequency, and filing status as applicable. Results update in real time.
  3. Review the step-by-step breakdown showing how federal income tax and FICA are calculated from your gross pay.
  4. The deduction breakdown chart shows the proportion of federal tax, Social Security, and Medicare taken from your pay.

Formula and Theory

Take-home pay (net pay) is your gross pay minus all deductions. The two main federal deductions are income tax and FICA (Federal Insurance Contributions Act) taxes.

FICA consists of Social Security tax at 6.2% on wages up to $168,600 (the 2025 wage base) and Medicare tax at 1.45% on all wages.

The standard deduction reduces your taxable income before bracket rates apply. For 2025: $14,600 (single), $29,200 (married), $21,900 (head of household).

Overtime pay in the US is typically 1.5 times the regular hourly rate for hours worked beyond 40 in a work week.

Worked Examples

Example 1: Hourly worker biweekly paycheck

Problem: Calculate the net biweekly paycheck for $25/hr, 40 hrs/week, single filing.

Solution: Gross annual = $52,000. Apply tax brackets and FICA. Divide net annual by 26.

Answer: Approximately $1,537 net biweekly

Example 2: Salaried worker monthly paycheck

Problem: Net monthly paycheck for a $75,000 salary, single filing.

Solution: Taxable income = $60,400. Apply brackets and FICA. Divide by 12.

Answer: Approximately $4,872 net monthly

Example 3: Overtime calculation

Problem: $20/hr, 50 hours worked this week.

Solution: Regular = 40 x $20 = $800. OT = 10 x $20 x 1.5 = $300.

Answer: $1,100 total weekly pay

Example 4: Hourly to annual conversion

Problem: Convert $30/hour to annual salary.

Solution: $30 x 40 x 52 = $62,400.

Answer: $62,400 per year

Frequently Asked Questions

Does this calculator include state taxes?
No, this calculator estimates federal income tax and FICA only. State income taxes vary widely and are not included.
What is FICA and how is it calculated?
FICA includes Social Security tax (6.2% on wages up to $168,600 in 2025) and Medicare tax (1.45% on all wages).
How are federal tax brackets applied?
Federal income tax uses progressive brackets. Only the income within each bracket range is taxed at that rate, which is why the effective rate is always lower than the marginal rate.
What is the difference between gross pay and net pay?
Gross pay is total earnings before deductions. Net pay (take-home pay) is what you receive after taxes and withholdings.
How is overtime pay calculated?
Non-exempt employees must receive at least 1.5 times their regular hourly rate for hours beyond 40 per work week.

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