# Gross to Net Calculator

URL: https://speedycalculator.com/calculators/finance/gross-to-net/
Last updated: 2026-10-25

> The gross to net calculator removes tax or deductions from a gross amount – using a rate charged on the net amount (like VAT or sales tax) or a share of the gross (like income tax) – to give the net amount and the tax.

## Inputs

- Gross amount
- Tax rate type
- Tax rate (%)

## Results

- Net amount
- Tax amount
- Tax as a share of gross

## Formula

```
Rate of the gross (e.g. income tax): net = gross × (1 − rate)
Rate added to net (e.g. VAT): net = gross ÷ (1 + rate)
Tax = gross − net
```

## Explanation

Whether you divide or multiply matters: removing 20% VAT from €120 gives €100 (divide by 1.2), but deducting 20% income tax from 120 gives 96. Choose the type of rate that matches your case.

### How to use the Gross to Net Calculator

- **Gross amount**
- **Tax rate type**
- **Tax rate**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the gross amount, choose the type of rate, and enter the rate.

### Tips

- Tax figures here are estimates for planning – your actual tax depends on credits, deductions and local rules.
- Check the tax year and filing status before you rely on a result.
- Use gross (before-tax) figures unless a field asks for take-home pay.
- When in doubt, confirm with the tax authority's own calculator or a tax professional.

### Common mistakes to avoid

- Confusing marginal and effective tax rates.
- Adding sales tax to a price that already includes it.
- Forgetting payroll taxes (Social Security and Medicare) on wages.

### Inputs explained

FieldWhat to enterGross amountAmount in your currencyTax rate typeChoose one: Tax is added on top of the net amount (VAT, sales tax), Tax is a share of the gross amount (income tax)Tax rateIn %

### What each result means

- **Tax amount** = [Gross amount] - [Net amount]
- **Tax as a share of gross** = [Tax amount]÷[Gross amount]×100

### Example values

How the main result changes when **Gross amount** changes and everything else stays at the example values above:

Gross amountNet amount6005009007501,2001,0001,5001,2501,8001,5002,4002,000

## Worked example

Inputs — Gross amount: $1,200; Tax rate type: Tax is added on top of the net amount (VAT, sales tax); Tax rate: 20 %.

Results — **Net amount = $1,000.00**; Tax amount = $200.00; Tax as a share of gross = 16.67 %.

## FAQ

**How do I calculate net from gross?**
For VAT, divide by (1 + rate); for income tax, multiply by (1 − rate).

**Why are the results different?**
VAT is a percentage of the net price; income tax is a percentage of gross pay.

**What is net pay?**
Pay after taxes and deductions.

**What formula does the Gross to Net Calculator use?**
Rate of the gross (e.g. income tax): net = gross × (1 − rate).