Why gross and take-home pay are so different
The salary on your offer letter is gross pay, the amount before anything is taken out. What actually reaches your account is net, or take-home, pay. Between the two sit income tax, social contributions, retirement deductions, and health premiums, which together can remove a large slice of the headline number.
Budgeting from your gross salary is one of the most common money mistakes, because it makes you feel richer than you are. This calculator converts gross to an estimated net figure so your budget is grounded in the money you can actually spend.
How to use this estimate
Enter your gross salary and an estimated combined deduction rate as a percentage. If you are not sure of your exact rate, check a recent payslip: divide your total deductions by your gross pay to get the percentage, then enter it here for a personalised estimate.
Because tax rules differ by country, region, and personal circumstances, this tool gives a general estimate rather than an exact filing figure. For precise numbers, check your payslip or your local tax authority. Once you know your real take-home pay, run it through the 50/30/20 budget calculator to plan where it goes.
These free tools provide general estimates for educational purposes only and are not financial, tax, or investment advice. For decisions specific to your situation, consult a qualified professional.