Gross pay

The Formula

What Each Symbol Means

See It Worked With Real Numbers

A formula on its own does not tell you which number goes where. The how to calculate a paycheck page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.

Where This Formula Appears

This equation is the working core of How To Calculate A Paycheck, filed under Finance. Every number the guide produces comes from substituting into this one line.

Related Formulas

• Compound balance

  Balance = principal x (1 + rate/n)^(n x t)

• Effective annual rate

  Effective = (1 + rate/n)^n - 1

• New salary

  New = old x (1 + raise)

• Real raise after inflation

  Real = (1 + raise) / (1 + inflation) - 1

• Actual savings rate

  savings rate = (income - needs - wants) / income

• Add tax to a net price

  Gross = net x (1 + rate)

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