To calculate an employee’s take-home pay, subtract all deductions (such as federal and state taxes, Social Security, and Medicare) from their gross salary. The formula is:
Take Home Pay = Gross Salary - Total Deductions

You can divide your take-home pay based on your financial goals and needs. A common approach is to allocate portions for savings, expenses, and discretionary spending. Popular budgeting rules can guide this division.

Gross income is calculated by adding all sources of income before any deductions. This includes wages, bonuses, rental income, and any other income streams:
Gross Income = Salary + Bonuses + Other Income

Pre-tax income (or gross pay) is the total earnings before any taxes or deductions are taken out. It’s usually the same as gross income, which includes your salary and any bonuses or additional compensation.

For instance, if an employee has a gross salary of $50,000 and total deductions amount to $10,000 (including taxes and other withholdings), their take-home pay would be:
Take Home Pay = $50,000 - $10,000 = $40,000

The payroll calculation formula can vary, but a basic formula to calculate total payroll for a period is:
Total Payroll = Total Employee Hours Worked x Hourly Wage + Total Salaries + Additional Deductions/Bonuses

The 75 15 10 rule is a budgeting guideline suggesting you allocate 75% of your income to needs and expenses, 15% to savings, and 10% to discretionary spending.

The 60 20 20 rule divides your income into 60% for needs, 20% for savings, and 20% for wants. This helps in creating a balanced budget.

The 50 20 30 rule recommends allocating 50% of your income to needs, 20% to savings, and 30% to discretionary spending or wants.

The 70/20/10 rule suggests that you spend 70% of your income on living expenses, save 20% for future goals, and donate or spend 10% on charitable contributions or personal interests.

The 80/20 rule is commonly known as the Pareto Principle. It suggests that 80% of effects come from 20% of causes, often applied in various fields, including economics and productivity.

There isn’t a universally “best” budget rule; it depends on individual financial situations. However, popular methods like the 50/30/20 rule or zero-based budgeting are effective for many.

The golden budget rule often refers to the principle of not spending more than what you earn and prioritizing saving and investing for future needs.

To budget your salary, start by calculating your total monthly income. Then allocate funds for essentials (like rent and bills), savings, and discretionary spending using a budgeting rule that fits your lifestyle, such as the 50/30/20 rule. Regularly review and adjust your budget as needed.

An hourly paycheck calculator helps you determine your earnings based on your hourly wage and the number of hours worked.
Formula:
Hourly Paycheck = Hourly Wage x Hours Worked

Example Calculation:
>Hourly Wage: $20
>Hours Worked in a Week: 40
Hourly Paycheck = $20 x 40 = $800

Considerations:
If you work overtime (typically over 40 hours per week), you may earn a higher rate (1.5 times your hourly wage). Don’t forget to account for any deductions (taxes, benefits) to find your take-home pay.

A weekly paycheck calculator helps you calculate your total earnings for the week based on your salary or hourly wage.

Formula:
Weekly Paycheck = Annual Salary / 52

Example Calculation:
Annual Salary: $52,000
Weekly Paycheck = $52,000 / 52 = $1,000

For Hourly Employees:
Use the same formula as for the hourly paycheck calculator, accounting for regular and overtime hours.

Example Calculation:
Hourly Wage: $25
Hours Worked in a Week: 45 (40 regular + 5 overtime)

Regular Pay = $25 x 40 = $1,000
Overtime Pay = $25 x 1.5 x 5 = $187.50
Weekly Paycheck = Regular Pay + Overtime Pay
Weekly Paycheck = $1,000 + $187.50 = $1,187.50

Considerations:
Ensure you include any deductions (taxes, insurance) to find your net pay.
Check your state’s regulations regarding overtime pay and other benefits.