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How to calculate net pay in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=A2-SUM(B2:D2)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Gross Pay | Tax | Insurance | Pension | Net Pay |
| 5000 | 1000 | 300 | 200 | |
| 4200 | 840 | 252 | 168 | |
| 6500 | 1300 | 390 | 260 | |
| 3800 | 760 | 228 | 152 |
=A2-SUM(B2:D2)→3500
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Step by step
- 1Set up columns: A = Gross Pay, B = Income Tax, C = National Insurance / Social Security, D = Pension Contribution.
- 2In E2 enter =A2-SUM(B2:D2) to calculate net pay.
- 3Add more deduction columns as needed and extend the SUM range.
- 4Format the result as Currency.
Tips
- Store deduction percentages in a separate reference table and reference them with formulas so changing a tax rate updates all rows automatically.
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Frequently asked
How do I calculate each deduction as a percentage of gross?
For example, for 20% income tax in B2: =A2*0.20. For a variable rate stored in E1: =A2*E1.
Can this handle variable deductions?
Yes — you can combine fixed amounts and percentage-based deductions in separate columns and SUM them all: =A2-SUM(B2:D2)-F2 where F2 is a fixed amount.
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