You got a job offer for $80,000! Congrats. But you're not taking
home $80,000. Uncle Sam eats first. Use this tool to see what actually hits your bank account.
Salary Details
* This is a simplified estimate. We assume a standard ~22-25% effective tax rate for estimation.
Your actual mileage may vary based on state taxes, filing status, and how many kids you have.
Net Salary
$0
Monthly Take Home
Annual Net$0
Hourly Rate$0
Annual Taxes$0
Gross vs. Net: The
Painful Truth
Gross salary is the number you brag about.
Net salary is the number you live on. The difference is usually 20-30%. If you budget based on your
gross income, you will go broke. Fast.
💡 Real Talk from David Chen, CFA
When negotiating a salary, always do the math backwards. If
you need $4,000/month to cover rent and life, asking for $48,000/year won't cut it. You need to ask
for ~$65,000. Never negotiate based on what you need; negotiate based on what the market
pays. But know your "walk away" number in net terms.
Where
Does the Money Go?
Federal Tax: The big one. Progressive rates (10% to 37%).
FICA (Social Security & Medicare): 7.65% flat rate. Poof. Gone.
State Tax: Depends where you live. Texas/Florida = 0%. California/NY = Ouch.
Benefits: Health insurance, 401k. These reduce your take-home but are (usually)
good for you.
⚠️ Common Mistake: The "Tax Refund"
Trap
Getting a huge tax refund isn't a "bonus." It means you
gave the government an interest-free loan all year. Adjust your W-4 withholding so you get more
money in your monthly paycheck instead. Cash flow today > Cash flow next April.
Hourly
vs. Salary
Salary: Stable. Benefits. But you might work
50 hours and get paid for 40. Effective hourly rate drops.
Hourly: You get paid for every minute.
Overtime (1.5x) is sweet. But if hours get cut, so does your rent money.
👨💼
Reviewed by David Chen, CFA
Chartered Financial Analyst
David advises negotiating total
compensation (salary + bonus + equity), not just base salary.
Frequently Asked Questions
What's the difference between gross and net salary?
Gross = the number on your offer letter. Net = what
actually hits your bank account after taxes, FICA (7.65%), benefits, and deductions. Expect to lose
20-30% to taxes alone. Always budget based on net, not gross.
How much should I negotiate for salary?
Never negotiate based on what you need—negotiate based on
market rate. Research your position on Glassdoor, levels.fyi, or Blind. Ask for 10-20% above the
initial offer. If they say no, negotiate benefits, bonus, equity, or vacation days.
What's a good salary-to-rent ratio?
The 30% rule: rent should be no more than 30% of your gross
income. Even better: 25% of gross, or 30-35% of NET income for safety. If rent is $1,500/month, you
need $60k gross minimum ($5k/month).
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