How to Calculate Net Pay
A five-step method to walk any salary from gross to take-home, with the formulas for each step.
Net pay in five steps: (1) divide salary by pay periods for gross per check; (2) subtract pre-tax deductions; (3) estimate federal withholding with brackets minus the standard deduction; (4) subtract FICA at 7.65 percent; (5) subtract state tax and post-tax deductions. A $75,000 biweekly salary nets about $2,352 per check before state tax.
Step 1: gross per paycheck
Divide annual salary by pay periods: 26 biweekly, 24 semimonthly, 12 monthly, 52 weekly. $75,000 biweekly is $75,000 / 26 = $2,884.62. For hourly workers, it is hourly rate times hours per period, plus any overtime premium.
Include predictable extras in gross if you want a realistic net: regular overtime, shift differentials, or expected bonuses, each annualized then divided by periods.
Step 2: subtract pre-tax deductions
Subtract 401(k) contributions, health/dental/vision premiums, HSA and FSA contributions, and commuter benefits. These reduce taxable income, so do this before computing taxes. Example: $173 401(k) + $80 health = $253 pre-tax, leaving $2,631.62 of taxable wages per check.
If your 401(k) is set as a percent of pay, convert it to dollars first: 6 percent of $2,884.62 is $173.08 per check.
Step 3: federal withholding
Simplified method: annual taxable income = salary - pre-tax deductions - $15,000 standard deduction (2025, single). Apply the brackets: 10 percent to $11,925, 12 percent to $48,475, 22 percent to $103,350, and so on. Divide the annual result by pay periods.
On $75,000 with no pre-tax deductions: $60,000 taxable, tax about $8,114 a year, or $312.08 biweekly. Your employer's real number follows your W-4, so expect small differences.
Step 4: FICA and step 5: state and post-tax
FICA: 6.2 percent Social Security on wages up to the $176,100 wage base, plus 1.45 percent Medicare on all wages, divided by periods. On $75,000 biweekly: about $220.68 per check. Then subtract state/local tax (salary x rate / periods) and post-tax items like Roth 401(k) or dues.
Finish: $2,884.62 - $312.08 federal - $220.68 FICA = $2,351.86 per check before state tax and deductions. Annualize it ($2,351.86 x 26 = $61,148) and sanity-check against last year's W-2 box 1 plus pre-tax items.
Skip the arithmetic
Run the five steps automatically with the free paycheck calculator.
Net pay math questions
What is the formula for net pay?
Net pay = gross pay per period, minus pre-tax deductions, minus federal income tax withholding, minus FICA (Social Security + Medicare), minus state and local tax, minus post-tax deductions. Compute each piece per paycheck, in that order.
How do I calculate net pay from an hourly wage?
Multiply the hourly rate by hours in the pay period to get gross, adding overtime at 1.5 times the rate for hours over 40 per week. Then run the same five steps: pre-tax deductions, federal withholding, FICA, state tax, post-tax deductions.
Why does the calculator differ from my actual paycheck?
Real withholding follows your W-4 elections step by step, your exact pre-tax benefit amounts, local taxes, and payroll timing quirks. The calculator uses a simplified single-filer estimate with standard figures, so treat it as a planning number accurate within a few percent, not a prediction to the dollar.