Gross to Net Calculator

Convert gross to net, or net to gross, with any tax rate. Choose whether tax comes off the gross (income tax) or goes on top of the net (VAT).

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Calculation mode:
Gross to Net
Net to Gross
Tax rate type:
Tax from gross (e.g. income tax)
Tax from net (e.g. VAT / sales tax)
Gross amount:
Enter gross amount
Net amount:
Enter net amount
Tax rate (%):
Enter tax rate
Calculate
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Select mode, enter the required values and click Calculate.
Please enter valid non-negative numbers in all visible fields.
Tax rate must be a non-negative number less than 100% when tax is taken from gross.
The result is out of range.
A single flat tax rate is applied. Progressive tax brackets, social contributions and deductions are not included.
Gross amount: {value}
Net amount: {value}
Tax rate: {value}%
Tax amount: {value}
Select mode, enter the required values and click Calculate.

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Calculation Examples

Calculation Case Result
$5,000 gross, 22% tax from gross Net $3,900, tax $1,100
$80 net, 20% tax from net (VAT) Gross $96, tax $16
$120 VAT-inclusive price, 20% VAT Net $100, VAT $20
Target net $3,900, 22% tax from gross Required gross $5,000 ($3,900 / 0.78)
Mihail Doncenco
Mihail Doncenco Site Creator & Calculator Expert

Founder and developer of CalcMate. Builds and maintains every calculator on this site, focusing on formula accuracy and clear, practical results.

How to Use the Gross to Net Calculator

Enter the gross amount, then choose the tax base. Pick tax from gross for income tax and payroll deductions, where the tax comes out of the higher figure. Pick tax from net for VAT and sales tax, where the tax goes on top of the lower figure. Next, give one more value: the tax rate, the tax amount, or the net amount you want. The tool fills in the rest: net, tax, and the gap between gross and net.

Example: a $5,000 gross at 22% tax from gross returns $3,900 net and $1,100 in tax. To go the other way, enter a target net and the calculator returns the gross you need. Results update as you type, so you can compare rates without starting over. The tool gives estimates for planning and does not replace tax advice.

How the Calculations Are Performed

With a decimal rate \(r\) (0.22 for 22%), tax taken from gross follows \[\text{Net} = \text{Gross} \times (1 - r)\] and the tax is \(\text{Gross} \times r\). Tax added to a net amount follows \[\text{Gross} = \text{Net} \times (1 + r)\] so the tax is \(\text{Net} \times r\). The same number means different things in each case: a $100 gross at 20% from gross leaves $80, while an $80 net at 20% from net becomes $96.

The two bases convert into each other: \(r_{\text{net}} = r_{\text{gross}} / (1 - r_{\text{gross}})\). A 20% rate from gross is a 25% rate from net, since $20 of tax is 20% of $100 but 25% of $80. In the U.S., payroll tax adds to income tax. Social Security takes 6.2% of wages up to $184,500 in 2026 (a maximum of $11,439), and Medicare takes 1.45% of all wages. Both come out of gross pay. Income tax is progressive, so use your effective rate (total tax divided by gross), not your top bracket: $18,000 of tax on $80,000 gross is 22.5%, which leaves $62,000.

Useful Tips 💡

  • Confirm which base a stated rate uses before you enter it. A 20% rate from gross is the same tax as 25% from net.
  • For salary planning, run the calculation both ways. The gross needed for a net target is the net divided by one minus the rate.
  • Enter your effective rate, not your bracket rate. The IRS Tax Withholding Estimator can help you find it if you are paid in the U.S.

📋Steps to Calculate

  1. Enter the gross amount, or the net amount you want to reach.

  2. Select the tax base (from gross or from net) and enter the rate or the tax amount.

  3. Read the calculated net, tax amount, and difference.

Mistakes to Avoid ⚠️

  1. Subtracting the VAT rate from a VAT-inclusive price. For a $120 price with 20% VAT, 120 times 0.8 gives $96, but the real net is $100 and the VAT is $20.
  2. Reversing the formula wrongly. To net $3,900 after 22% from gross, the gross is $3,900 divided by 0.78, which is $5,000, not $3,900 times 1.22, which is $4,758.
  3. Using one flat rate for pay that has brackets, wage-base caps, and pre-tax deductions. U.S. FICA alone is 7.65% of gross up to the Social Security cap, on top of income tax.
  4. Treating the result as final advice. Confirm against your payslip, official tax tables, or a qualified adviser.

Practical Applications📊

  1. Estimate take-home pay from an offer. At a combined 28% effective rate, a $90,000 gross salary leaves $64,800 a year, or $5,400 a month.

  2. Price an invoice to hit a target. To keep $4,000 after 25% is withheld from gross, invoice $5,333.33, which is $4,000 divided by 0.75.

  3. Add VAT or sales tax to a price. An $80 net item at 20% tax costs $96 gross, with $16 of tax.

  4. Compare quotes that mix gross and net. A $45 per hour net offer at 20% tax from gross equals $56.25 per hour gross.

Questions and Answers

Can I use the calculator for VAT or sales tax?

Yes, select tax from net, enter the net price and the VAT rate, and the tool returns the gross price with tax. At 20% VAT, a net price of $80 becomes $96. For the reverse, start from a VAT-inclusive price and the tool recovers the net: $120 at 20% VAT is $100 net plus $20 VAT, because \(\text{VAT} = \text{Gross} \times r / (1 + r)\). VAT and sales tax rates differ by country and state, so check the rate that applies to your item.

How accurate is the result for real payroll?

The result is exact for a single flat rate, but real paychecks usually involve more. Income tax is progressive, so a flat rate must be your effective rate. Social Security tax stops at the 2026 wage base of $184,500, Medicare adds 0.9% on wages above $200,000 for single filers, and pre-tax deductions such as a 401(k) lower taxable pay. State and local taxes add more. Use the figure as a planning estimate and confirm it with your payslip, official tax tables, or a qualified adviser.

How do I calculate net pay from gross salary?

Multiply gross pay by one minus the tax rate as a decimal. At 22%, net equals gross times 0.78, so $5,000 gross becomes $3,900 net with $1,100 in tax. Use your total effective rate. If the 22% covers income tax only, U.S. FICA of 7.65% (6.2% Social Security plus 1.45% Medicare) takes another $382.50 from a $5,000 paycheck. The calculator shows the tax amount along with the net.

What formula does the calculator use?

For tax from gross, \(\text{Net} = \text{Gross} \times (1 - r)\), where \(r\) is the tax rate as a decimal. For tax from net, \(\text{Gross} = \text{Net} \times (1 + r)\). Both follow from basic percentage arithmetic, and the tax amount is the difference between gross and net. Solving for the other side gives \(\text{Gross} = \text{Net} / (1 - r)\) for tax from gross, and \(\text{Net} = \text{Gross} / (1 + r)\) for tax from net.

What is a gross to net calculator?

A gross to net calculator converts a gross amount into the net amount left after tax, and works in reverse to show the gross needed for a target net. It handles both tax taken from the gross, as with income tax, and tax added on top of the net, as with VAT and sales tax. For example, $5,000 gross at 22% from gross gives $3,900 net, and $80 net at 25% from net gives $100 gross.

What is the difference between tax from gross and tax from net?

Tax from gross is taken out of the higher figure, and tax from net is added to the lower figure, so the same percentage gives different tax amounts. On $100 gross at 20% from gross, the tax is $20 and the net is $80. On $80 net at 20% from net, the tax is $16 and the gross is $96. To convert, use \(r_{\text{net}} = r_{\text{gross}} / (1 - r_{\text{gross}})\) and \(r_{\text{gross}} = r_{\text{net}} / (1 + r_{\text{net}})\). A 20% rate from gross is 25% from net.
Disclaimer: This calculator is designed to provide helpful estimates for informational purposes. While we strive for accuracy, financial (or medical) results can vary based on local laws and individual circumstances. We recommend consulting with a professional advisor for critical decisions.