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How to calculate take-home pay in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=A2-B2-C2-D2✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Gross Pay | Tax | Social Security | Other Deductions | Take-Home |
| 4000 | 800 | 240 | 200 | |
| 6000 | 1200 | 360 | 300 | |
| 3500 | 700 | 210 | 150 | |
| 8000 | 1600 | 480 | 400 |
=A2-B2-C2-D2→2760
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Step by step
- 1Column A = Gross Salary, Column B = Income Tax, Column C = Social Security / NI / CPF, Column D = Other Deductions (pension, health insurance).
- 2In E2 enter =A2-B2-C2-D2 for take-home pay.
- 3Calculate each deduction in its own cell using percentage formulas (e.g., B2=A2*0.20 for 20% tax).
- 4Use SUM for multiple deduction columns: =A2-SUM(B2:D2).
Tips
- Add an effective rate cell: =1-E2/A2 formatted as Percentage to instantly see what fraction of gross pay is taken as deductions.
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Frequently asked
How do I handle pre-tax deductions like pension contributions?
Subtract pre-tax deductions from gross before calculating income tax: TaxableIncome = GrossPay - PensionContribution, then apply tax to that reduced figure.
Can I model different salary levels at once?
Yes — use a data table (Excel: Data > What-If Analysis > Data Table) to show take-home pay across a range of gross salaries simultaneously.
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