How to Get Net From Gross
Understand the difference between gross and net so you can make sure you receive the correct pay. Your gross pay is the overall amount you are paid. Net pay is the amount you actually receive after certain costs are taken out. If you know how to make this calculation, you can verify the accuracy of your paychecks.
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Instructions
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1
Find the amount of your gross pay listed on your pay stub and make note of it.
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2
Add up all the deductions listed on the stub. These can include taxes, medical benefits and any special deductions you have established. Write this number below your gross pay.
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3
Subtract the total of your deductions from your gross pay. The result is your net pay.
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Tips & Warnings
This principle also holds true for a business calculating its gross and net profit. Net profit is what is left after expenses are subtracted from the gross.
