myUSFinance

1. Enter your Gross Pay Amount ($) — This value represents your gross pay amount
2. Enter your Pay Frequency — This value represents your pay frequency
3. Enter your Federal Tax Rate (%) — This value represents your federal tax rate
4. Enter your State Tax Rate (%) — This value represents your state tax rate
5. Enter your Social Security Tax Rate (%) — This value represents your social security tax rate
6. Enter your Medicare Tax Rate (%) — This value represents your medicare tax rate
7. Enter your Other Deductions ($) — This value represents your other deductions
8. Click Calculate — Review your results in the output section below the form. The calculator instantly computes all values based on your inputs.
9. Adjust and Compare — Modify any input to see how changes affect the result. Try different scenarios to find the optimal approach for your situation.

All calculations are performed instantly in your browser. Your data is never sent to any server or stored anywhere — your financial information remains completely private.

Where:

• Gross Pay — Total earnings before any deductions (salary ÷ pay periods)
• Federal Tax — Withholding based on W-4 elections and tax brackets
• State Tax — State income tax withholding (varies by state; 9 states have none)
• FICA — Social Security (6.2% up to $168,600 in 2024) + Medicare (1.45% on all earnings)
• Deductions — Pre-tax: 401(k), health insurance, HSA, FSA. Post-tax: Roth 401(k), garnishments

Worked Example

Annual salary: $75,000. Biweekly gross: $2,884.62. Federal tax (22% bracket, single): ~$345. State tax (5%): ~$110. Social Security: $178.85. Medicare: $41.83. 401(k) 6%: $173.08. Health insurance: $100. Net pay: ~$1,935.86.

Limitations and Assumptions

Pre-tax deductions (401(k), health insurance, HSA) reduce your taxable income, effectively costing less than the full deduction amount. A $173 biweekly 401(k) contribution only reduces your take-home pay by about $126 if you are in the 22% federal + 5% state brackets. Your W-4 form determines federal withholding — review it after major life changes to avoid owing taxes or getting too large a refund.

Understanding the following key concepts will help you interpret your results and make better financial decisions:

• Principal — The initial amount of money involved in the calculation, whether it is a starting balance, loan amount, or investment.
• Interest Rate — The percentage charged or earned on the principal amount, typically expressed as an annual rate (APR). This rate determines how quickly your money grows or how much borrowing costs.
• Compounding — The process of earning interest on previously earned interest. More frequent compounding (daily vs. monthly vs. annually) results in higher effective returns or costs.
• Time Horizon — The length of time over which the calculation applies. Longer time horizons amplify the effects of compounding and small differences in rates.
• Present Value vs. Future Value — Present value is what money is worth today; future value is what it will be worth at a specific point in the future, accounting for growth or inflation.

These concepts form the foundation of virtually all financial calculations. Understanding how they interact helps you evaluate any financial product or decision with confidence.

Let's calculate taxes for a typical scenario.

Scenario: Michael is a single filer earning $85,000 in gross income. He contributes $6,500 to a traditional 401(k) and claims the standard deduction.

• Gross income: $85,000
• 401(k) contribution: -$6,500
• Adjusted Gross Income: $78,500
• Standard deduction: -$14,600
• Taxable income: $63,900

Using the progressive tax brackets: the first $11,600 is taxed at 10% ($1,160), income from $11,601-$47,150 at 12% ($4,266), and income from $47,151-$63,900 at 22% ($3,685). His total federal tax is approximately $9,111, giving him an effective tax rate of 10.7% — well below his marginal rate of 22%.

If Michael increases his 401(k) contribution to $15,000, his taxable income drops to $55,400, reducing his federal tax to approximately $7,239 — saving $1,872 in taxes while building retirement savings. This calculator helps model these tax-saving strategies.