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Finance

Net to Gross Calculator

Enter a net (take-home) amount and a tax or deduction rate and this calculator works backwards to find the gross amount before tax. It covers three common situations: adding back VAT or sales tax, reversing a flat income-tax rate, and grossing up for US payroll (FICA) deductions. You can also flip it around and go from gross to net. Results update instantly as you type, with a full breakdown showing every figure.

Your details

Net to Gross finds the pre-tax amount you must earn to receive a given take-home. Gross to Net deducts tax from a known gross.
VAT/sales tax is charged on top of the net price. Income tax and payroll deductions are taken from gross pay. FICA uses the fixed US rates for 2026.
The starting amount: your net take-home in Net-to-Gross mode, or your gross pay in Gross-to-Net mode.
The VAT or sales-tax rate as a percentage, e.g. 20 for 20% UK VAT.
%
Currency
Gross amountModerate tax burden
$3,600.00

The before-tax or before-deduction total

Net amount$3,000.00
Total deducted$600.00
Effective tax rate0.17%
$0.0$2k$4k02550
Tax rate (%)
  • Net
  • Tax deducted

To receive 3,000 net, the gross must be 3,600.

  • Deductions total 600, which is 16.67% of gross.
  • The gross-up multiplier is 1.2000: multiply any net amount by this to find its gross equivalent.
  • VAT and sales tax are applied on top of the net (pre-tax) price, so the gross-up formula is: gross = net x (1 + rate).

Next stepFor VAT registered businesses, the net (ex-VAT) price is what you charge before adding the tax that gets remitted to the government.

Formula

Net-to-Gross (income tax): G=N1rNet-to-Gross (VAT): G=N×(1+r)Gross-to-Net: N=G×(1r)\text{Net-to-Gross (income tax): } G = \dfrac{N}{1 - r} \qquad \text{Net-to-Gross (VAT): } G = N \times (1 + r) \qquad \text{Gross-to-Net: } N = G \times (1 - r)

Worked example

To receive a net bonus of $5,000 after a 22% flat withholding: Gross = 5,000 / (1 - 0.22) = 5,000 / 0.78 = $6,410.26. Tax withheld = $6,410.26 - $5,000 = $1,410.26. Effective rate = 1,410.26 / 6,410.26 = 22%. The gross-up multiplier is 6,410.26 / 5,000 = 1.2821.

What is a net-to-gross calculation (gross-up)?

A gross-up converts a desired after-tax (net) amount into the pre-tax (gross) amount someone must receive so that, after deductions, the agreed net lands exactly in their hands. Employers use it for bonuses, expense reimbursements, and relocation payments where the intent is that the recipient keeps a specific sum. The key insight is that ordinary arithmetic is asymmetric: deducting 20% from $100 gives $80, but adding 20% to $80 gives only $96. To reverse a 20% deduction you must divide by 0.80 (i.e. 1 minus the rate), not multiply by 1.20.

Net vs. gross: two different starting points

Gross is the total before any tax or deduction is removed. Net is what remains after. The relationship depends on which side the tax is applied to. For VAT and sales tax, the tax is added on top of a net price: a $50 item with 20% VAT costs $60 gross. For income tax and payroll deductions, the tax is taken from the gross: a $5,000 gross salary at 22% tax yields a $3,900 net. These two conventions require different formulas, which is why the calculator asks which type of tax you are working with. For VAT: gross = net x (1 + rate). For income tax: gross = net / (1 - rate).

US payroll (FICA) gross-up

FICA (Federal Insurance Contributions Act) covers Social Security at 6.2% and Medicare at 1.45%, for a combined employee rate of 7.65% on gross wages (2026 rates; the Social Security wage base is $176,100). To guarantee a net of $3,000 after FICA: gross = 3,000 / (1 - 0.0765) = 3,000 / 0.9235 = $3,248.51. Social Security = $3,248.51 x 6.2% = $201.41. Medicare = $3,248.51 x 1.45% = $47.10. Note that FICA is only one layer: federal and state income-tax withholding sit on top of it, so a full payroll gross-up stacks the rates.

Gross-up multiplier and the reverse formula

Once you know the effective tax rate, the gross-up multiplier is simply 1 / (1 - effective rate). A combined rate of 30% gives a multiplier of 1 / 0.70 = 1.4286, meaning every dollar of net requires $1.4286 gross. Stacking independent rates (federal + state + FICA) requires multiplying them as (1 - r1) x (1 - r2) x ... rather than adding them, because each rate applies to the residual after the previous one. However, for flat marginal-rate estimates, treating them as additive is a close enough approximation for planning purposes.

Common tax and deduction rates by type

ContextTypical rateApplied toFormula
UK VAT (standard)20%Net (ex-VAT) priceGross = Net x 1.20
EU VAT (common)21-25%Net (ex-VAT) priceGross = Net x (1 + rate)
US sales tax0-13%Net (pre-tax) priceGross = Net x (1 + rate)
US FICA (employee)7.65%Gross wagesNet = Gross x 0.9235
US federal income tax (22% bracket)22%Taxable grossGross = Net / 0.78
US federal income tax (24% bracket)24%Taxable grossGross = Net / 0.76
UK basic-rate income tax20%Gross salaryGross = Net / 0.80
Canada federal income tax (basic)20.5%Gross incomeGross = Net / 0.795

Reference rates for the most common tax contexts. Rates change by jurisdiction and year.

Frequently asked questions

What is the difference between net to gross and gross to net?

Net to gross (gross-up) starts from the take-home amount you want someone to receive and calculates the gross payment needed before deductions. Gross to net starts from a known gross amount and subtracts the applicable taxes or deductions to find the take-home. The two directions use inverse formulas: gross to net multiplies gross by (1 - rate); net to gross divides net by (1 - rate).

Why can't I just add the tax rate back to the net amount?

Because tax percentages are relative to different bases. If you earn $1,000 gross and pay 20% income tax, you keep $800. But adding 20% to $800 gives only $960, not $1,000, because 20% of $800 is only $160. The correct reversal is to divide by (1 - 0.20) = 0.80, giving exactly $1,000. This non-obvious asymmetry is why a proper gross-up formula is essential.

How do I gross up a bonus so the employee receives a specific net?

Decide on the combined withholding rate (federal + state income tax + FICA, or your jurisdiction's equivalent). Then apply: Gross bonus = Target net / (1 - combined rate). For example, to net $5,000 at a 30% combined rate: $5,000 / 0.70 = $7,142.86. Pay the $7,142.86 gross; after withholding $2,142.86 (30%), the employee pockets exactly $5,000.

What FICA rates does this calculator use?

The calculator uses the 2026 employee rates: Social Security at 6.2% (on wages up to the annual wage base of $176,100) and Medicare at 1.45%, for a combined 7.65%. Self-employed individuals pay both the employee and employer halves, a combined 15.3%, though they receive a 50% above-the-line deduction on the employer portion. The wage base is not enforced in this calculator, so results above the Social Security threshold will be slightly overstated.

Does VAT gross-up use the same formula as income tax gross-up?

No. VAT is added on top of a net price, so gross = net x (1 + VAT rate). For example, at 20% VAT: gross = $100 x 1.20 = $120. Income tax is deducted from gross, so gross = net / (1 - tax rate). At 20% income tax: gross = $80 / 0.80 = $100. The two formulas are not interchangeable - using the wrong one produces an incorrect result.

How do I stack multiple tax rates for a full payroll gross-up?

Multiply the net-of-each-rate factors together. For instance, if federal withholding is 22%, state withholding is 5%, and FICA is 7.65%, the combined keep fraction is (1 - 0.22) x (1 - 0.05) x (1 - 0.0765) = 0.78 x 0.95 x 0.9235 = 0.6843. The gross-up multiplier is 1 / 0.6843 = 1.4613, so a $3,000 net requires a gross of $4,384. Alternatively, combine the rates additively as an approximation: 22 + 5 + 7.65 = 34.65%, giving gross = $3,000 / 0.6535 = $4,592, slightly higher because additive stacking overstates the combined rate slightly.

Sources

Written by Sarah Klein, CFP Certified Financial Planner · Chicago, USA

Fifteen years translating mortgage tables and amortization schedules into decisions that actually help real borrowers.

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