How the salary calculator works
Tax systems differ from country to country, so this calculator uses the rates you give it rather than guessing. The quickest way to find your rates is to look at a recent payslip: divide the income tax taken off by your gross pay, then do the same for pension, insurance or social security contributions.
- Enter your gross pay and whether it is per year, month or hour.
- Add your average income tax rate and your social security rate.
- Include any fixed yearly deductions, such as union fees or a company car charge.
- Pick how many payments you get per year. Some countries split salary into 13 or 14 payments.
The formula
Yearly gross = monthly gross × 12, or hourly rate × hours per week × 52
Deductions = gross × tax rate + gross × social security rate + other deductions
Net pay = gross − deductions
Net per payment = net pay ÷ payments per year
Worked example
Priya earns 48,000 a year. Her average tax rate is 18% and her social security is 6.5%. Tax is 8,640 and contributions are 3,120, so she keeps 36,240 a year. That is 3,020 a month on 12 payments, or about 2,588.57 per payment if her employer pays 14 times a year.
Average rate vs marginal rate
Many countries tax income in bands, so your marginal rate, the one on your last unit of income, is higher than your average rate. This calculator needs the average rate. Using your top band rate will make your take-home pay look lower than it really is.
What 13 or 14 payments means
In countries such as Spain, Portugal, Austria and parts of Latin America, the yearly salary is often paid in 14 parts, with extra payments in summer and winter. Your yearly income stays the same, but each normal monthly payment is smaller. The Net per month figure spreads your yearly net pay evenly across 12 months, which is useful for budgeting.
Hourly pay
If you choose Hour, the calculator multiplies your rate by your weekly hours and by 52 weeks. It doesn't take off unpaid holidays, so reduce the weeks by lowering your hours if you are paid only for time worked.
Frequently asked questions
What is the difference between gross and net salary?
Gross salary is your pay before any deductions. Net salary is what you receive after tax, social security and other deductions.
How do I find my effective tax rate?
Add up the income tax on your payslips for a year and divide it by your gross pay for the same year. Multiply by 100 to get a percentage.
Does this calculator know my country's tax bands?
No. It uses the rates you enter, which makes it work in any country as long as you know your average rates.
How do I convert an hourly wage to a yearly salary?
Multiply the hourly rate by hours per week and then by 52. At 20 an hour and 40 hours, that is 41,600 a year.
Why is my net per payment lower than my net per month?
If you get 13 or 14 payments a year, each payment is smaller than one twelfth of your yearly net pay.
Last reviewed on by the Dailycaltor team.