Payroll Deduction Calculator
A payroll deduction is any amount withheld from an employee's gross pay, whether for taxes, retirement savings, insurance premiums or other elections. This calculator converts a deduction expressed as a percentage of gross pay into a dollar figure and shows the pay remaining afterward. The method is direct: the deduction equals gross pay multiplied by the deduction rate, and the remaining pay is gross pay minus that deduction. Enter your gross pay for the period and the deduction percentage, and the tool returns both the amount withheld and what is left. This is handy for sizing a single deduction such as Social Security at 6.2 percent, Medicare at 1.45 percent, or a chosen 401k contribution rate, before combining them into a full paycheck. Because each employee's elections differ, the rate is kept editable so you can model any single deduction or the combined rate from your pay stub. The US Internal Revenue Service publishes the federal payroll tax rates and the rules that govern mandatory withholdings. Treat voluntary benefit deductions and state rules separately. Every figure here is computed deterministically from the formula shown in full below, with a worked example that reconciles exactly to the calculator so you can follow each step.
A payroll deduction is a share of gross pay: deduction = gross pay times rate. On a gross of $5,000.00 at a 7.65% rate (Social Security plus Medicare), the deduction is $382.50, leaving 4,617.50.
Payroll Deduction formula
Deduction = Gross pay x rate
Remaining pay = Gross pay - Deduction
Gross pay = earnings before this deduction
rate = deduction percentage as a decimal (7.65% = 0.0765)
The combined Social Security (6.2%) and Medicare (1.45%) employee rate of 7.65% is a common single deduction; the same formula sizes any percentage-based withholding.
Worked example
Find the FICA deduction on a 5,000 paycheck at the combined 7.65% employee rate.
- Convert the rate to a decimal: 7.65% = 0.0765
- Multiply by gross pay: 5,000 x 0.0765 = 382.50
- Deduction amount = 382.50
- Remaining pay = 5,000 - 382.50 = 4,617.50
These are the calculator's default inputs, so the result above matches the widget exactly.
Payroll Deduction Calculator: frequently asked questions
What is a payroll deduction?
A payroll deduction is any amount an employer withholds from gross pay, such as income tax, Social Security, Medicare, retirement contributions or insurance premiums. Some are mandatory and some are voluntary elections by the employee.
What is the 7.65% rate?
It is the combined employee share of FICA taxes: 6.2% for Social Security plus 1.45% for Medicare. Employers match this amount. Social Security applies only up to an annual wage base, while Medicare has no cap and adds a surtax above certain thresholds.
Can I use this for a 401k contribution?
Yes. Enter your chosen contribution percentage as the rate to see the dollar amount that would be withheld from a paycheck. Combine it with tax deductions to model full take-home pay.
Are deductions taken before or after tax?
It depends. Pre-tax deductions like traditional 401k contributions and many health premiums reduce taxable wages, while items such as Roth contributions are taken after tax. This tool computes the dollar amount of any single percentage deduction.
What is the payroll deduction formula?
Deduction equals gross pay multiplied by the rate. On 5,000 at 7.65%, the deduction is 382.50 and 4,617.50 remains.
Official sources
- US federal payroll, withholding and reimbursement guidance: US Internal Revenue Service (IRS). As at 25 June 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. This is general information, not financial, tax, legal or investment advice.