Personal Finance
Net pay
Subtract each deduction from gross to find take-home pay.
The Formula
Net = gross - income tax - payroll tax - contributions
Subtract each deduction from gross to find take-home pay.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| t | Income tax rate | rate | Effective income tax rate. |
| p | Payroll tax rate | rate | Social insurance contribution rate. |
| c | Contribution rate | rate | Retirement or benefit deduction rate. |
What Each Symbol Means
trate
Income tax rate
Effective income tax rate.
prate
Payroll tax rate
Social insurance contribution rate.
crate
Contribution rate
Retirement or benefit deduction rate.
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.