Income and salary calculator

Formula

How it works

Your pay is first turned into an annual figure (amount × payments per year, using your working hours and weeks), then divided by the number of payments in each other frequency. Estimated tax is the percentage you enter; deductions are subtracted to give take-home pay.

Assumptions

• Pay is converted using your working weeks and hours; semimonthly is always 24 payments and monthly 12 a year.
• Estimated tax is one flat percentage that you enter, applied to gross pay (or to gross minus deductions if you choose “before tax”). Real tax is usually progressive and depends on your country, benefits and credits.
• Deductions are a fixed amount per period plus an optional percentage of gross. Social contributions, pensions and benefits are only included if you enter them as deductions.
• Nothing is rounded during the calculation, only when shown, so the pay periods add up exactly to the annual figure.
• Overtime, bonuses, unpaid leave, holidays and changes in pay during the year are not modelled; reduce the working weeks to allow for unpaid time.

Common mistakes

• Entering a tax percentage as a single flat rate when the actual tax system is progressive (different rates on different portions of income) - this calculator's flat-rate estimate will diverge from a real progressive tax bill, especially at higher incomes.
• Choosing the wrong deduction timing (before tax vs after tax) - a pre-tax deduction lowers the taxable amount, while a post-tax deduction doesn't, so picking the wrong one changes both the estimated tax and the final net figure.
• Treating the biweekly row as exactly half of the monthly figure - biweekly pay (every two weeks) produces 26 payments a year, not 24, so it doesn't divide evenly into monthly amounts the way semi-monthly pay does.

Worked example

650 paid every two weeks, 40 hours a week, 52 weeks a year, 15% estimated tax (shown as gross → net):

• Hourly8.125 CAD → 6.9063 CAD
• Daily65.00 CAD → 55.25 CAD
• Weekly325.00 CAD → 276.25 CAD
• Biweekly (every 2 weeks)650.00 CAD → 552.50 CAD
• Semimonthly (twice a month)704.17 CAD → 598.54 CAD
• Monthly1,408.33 CAD → 1,197.08 CAD
• Annually16,900.00 CAD → 14,365.00 CAD

1. working hours per year = hours per week × weeks per year = 40 × 52 = 2,080
2. payments per year = 26
3. annual gross = 650 × 26 = 16,900
4. estimated tax = 16,900 × 15% = 2,535
5. deductions = 0 + 0 = 0
6. annual take-home = 16,900 − 2,535 − 0 = 14,365