What are pre-tax deductions?

Pre-tax deductions are subtracted from gross pay before income tax is calculated, reducing the taxable base. Common examples: 401k/pension contributions, employer-sponsored health insurance premiums, HSA and FSA contributions, and commuter benefits. Because they reduce taxable income, pre-tax deductions save the employee both income tax and, in some cases, FICA payroll tax on the deducted amount.

A payslip (or pay stub) is a document provided with each pay period showing: gross pay, all deductions itemized line-by-line (income tax, pension, health insurance, loan repayments), employer contributions, and final net pay. Most countries legally require employers to provide payslips — the UK Employment Rights Act 1996 requires them from day one. Payslips are also essential for visa applications, mortgage approvals, and benefits claims.

How do percentage-based components work?

A component set as "% of gross" calculates its value as a proportion of the gross salary, adjusting automatically when the salary changes. For example, a 10% housing allowance on a $3,000 gross adds $300; on a $4,000 gross it adds $400. Percentage-based components are common for housing allowance, transport allowance, and performance bonuses in structured payroll systems.

Can I use this for any country?

Yes. The calculator is deliberately country-neutral — it does not apply specific tax brackets, social security rates, or statutory deduction rules automatically. You manually enter tax amounts or rates, pre-tax deduction percentages, and post-tax deductions. This makes it equally usable for UK PAYE, US federal/state withholding, Indian TDS, Bangladesh payroll, UAE salary structures, or any other jurisdiction.

How is net pay calculated?

Net pay is computed in a fixed sequence: gross earnings minus pre-tax deductions equals taxable income; taxable income minus income-tax withholding equals pay after tax; pay after tax minus post-tax deductions equals net pay. The order matters — pre-tax deductions reduce taxable income before withholding is applied, so classifying each deduction correctly produces a materially different (and accurate) net figure.

Is my salary data sent to a server?

No. The entire payroll breakdown is calculated in your browser with JavaScript. No salary figures, deduction amounts, or tax rates are uploaded, logged, or stored. The calculator works fully offline once the page is loaded.

Free Payroll Breakdown Calculator — Gross to Net Pay

A payroll breakdown calculator computes an employee's net pay by starting with gross salary and subtracting all earnings adjustments, pre-tax deductions (health insurance, pension), income tax withholding, and post-tax deductions. This tool gives a line-by-line payslip breakdown for any salary structure.

Free — No SignupRuns in BrowserData Never Uploaded

Calculate net pay from gross salary with earnings, deductions, and tax breakdown.

Gross-to-net pay calculation with line-by-line payslip breakdown
Add earnings and allowances as fixed amounts or percentages of gross
Pre-tax deductions reduce taxable income before withholding is applied
Post-tax deductions subtracted after tax — correctly sequenced
Income-tax withholding calculated on taxable income only
Works with any currency and country — no jurisdiction-specific rules
Client-side only — no salary data is uploaded or stored

Features

Everything you need in one Payroll Breakdown Calculator

Gross to net pay

Converts gross salary to take-home pay by applying every earning and deduction in the correct order, so the final number matches a real payslip.

Pre-tax vs post-tax deductions

Mark each deduction as pre-tax or post-tax. Pre-tax items reduce taxable income before withholding is applied; post-tax items are taken after.

Fixed amounts or percentages

Every component can be a fixed figure or a percentage of base gross — handy for percentage-based allowances and statutory contributions.

Works for any country

Currency-agnostic with a tax rate you control, so it suits any jurisdiction. Enter your local withholding rate for an accurate net figure.

How It Works

How to use Payroll Breakdown Calculator

Enter gross salary

Input the employee's monthly or annual gross salary.

Add earnings and deductions

Add allowances (housing, transport) and deductions (pension, health, tax). Set each as fixed amount or percentage of gross.

See net pay breakdown

The calculator shows total earnings, total deductions, and final net pay — ready to use as a payslip.

Format Comparison

Common payslip terms explained

Term	Meaning
Gross pay	Total agreed compensation before any deductions
Allowance	An additional earning such as housing or transport
Pre-tax deduction	Subtracted before tax — lowers taxable income (e.g. pension)
Taxable income	Gross earnings minus pre-tax deductions
Withholding	Income tax the employer deducts and remits to the government
Post-tax deduction	Subtracted after tax — does not reduce taxable income
Net pay	Take-home pay deposited to the employee

Troubleshooting

How to fix common syntax errors

Most “invalid JSON” failures come from a small set of mistakes. Paste the failing JSON above, click Validate, and the tool points you at the exact line and column.

Classifying pension as post-tax instead of pre-taxPension deducted after tax calculation

Pension and most retirement contributions are pre-tax — they reduce taxable income before withholding. Moving them to pre-tax lowers the tax owed and produces a higher (correct) net figure.

Entering annual salary without switching period$60,000 entered as monthly gross

Match the gross salary to the selected period. Toggle monthly/annual before entering the figure — a $60K annual salary is $5,000/month; entering $60,000 as monthly grossly inflates the result.

Applying tax rate to gross instead of taxable incomeTax = gross × rate (ignoring pre-tax deductions)

Tax is applied to taxable income (gross minus pre-tax deductions), not gross. This calculator applies the rate correctly — but verify if cross-checking with a manual formula.

Double-counting employer contributionsAdding employer pension match as employee deduction

Only include employee-side deductions (what is taken from the employee's pay). Employer contributions are an additional cost on top of gross — use the Employee Cost Calculator for those.

Percentage components calculated from net instead of gross10% housing allowance on net pay

Percentage-based allowances and deductions are always calculated as a percentage of base gross, not net. The calculator uses gross as the base for all percentage components.

Tax rate entered as decimal instead of percentageTax rate: 0.25 instead of 25

Enter tax rates as whole percentages (e.g. 25 for 25%), not decimals. Entering 0.25 applies a 0.25% rate — a 100× underestimate of the intended 25%.

FAQ

Frequently asked questions

Gross pay is the total compensation agreed in the employment contract before any deductions — base salary plus bonuses, allowances, and overtime pay. Net pay (take-home pay) is the amount deposited into the employee's account after income tax withholding, employee pension contributions, health insurance premiums, and any other authorized pre-tax and post-tax deductions are subtracted from gross.

Free Software

Genius HRM — Free HR Management Software

Beyond calculators — manage your entire HR operation with Genius HRM. Self-hosted, open source, and free forever. Payroll, leave management, attendance tracking, performance appraisals, and employee records all in one platform.

Payroll processingLeave & attendancePerformance appraisalsEmployee recordsSelf-hosted & free

Download FreeMIT licence · No subscription · Self-hosted

Related Tools

You might also need

Employee Total Cost Calculator

Calculate the true total cost of employing someone beyond base salary.

Salary Hike Calculator

Calculate new salary after a percentage increase and see the monthly/annual difference.

Overtime Pay Calculator

Calculate overtime pay based on hours worked, regular rate, and overtime policy.

Leave Accrual Calculator

Calculate accrued leave days based on joining date, policy type, and accrual rate.

Attendance Percentage Calculator

Calculate student attendance percentage and check if minimum threshold is met.

Interview Question Generator

Generate structured interview questions by role type, level, and competency area.

Job Description Generator

Generate a professional job description template from role title and company details.

Freelance Rate Calculator

Calculate the minimum hourly rate you need to charge as a freelancer to hit your income goal.

References

Need this built into your product?

We design and build custom software — SaaS platforms, MVPs, AI agents, and web apps.

Let's talk

Genius HRM — Free HR Software

Self-hosted HRM: payroll, leave, attendance, appraisals.

AI Agents for HR & Recruiting

Automate candidate screening, onboarding, and HR workflows.

Custom SaaS Development

Need a custom HRM or workforce platform? We build it end-to-end.

MVP Development

Launch your HR product in 6–8 weeks. Fixed price, committed timeline.

Have a project in mind?

We turn ideas into production-ready software — SaaS, web apps, mobile, and AI agents. Fixed price. Committed timeline. No surprises.