Gross to Net Calculator
From a gross amount and a deduction rate, compute the net amount received and the deducted amount — for salary, income or any proportional reduction.
Input Data
Results
At a glance:Gross to net converts a gross amount (before deductions) at a combined deduction rate into the net received, showing the deducted amount. Net = gross × (1 − rate); deducted = gross × rate; net + deducted = gross. Common cases: take-home pay after MPF and tax, or income after fees/commission. Example: gross 30,000, 15% off → deducted 4,500, net 25,500. Caveat: a single combined rate simplifies all deductions; HK salaries tax is progressive with allowances and MPF has caps — for precision use the dedicated calculators. Estimation only.
Formula
Net = gross × (1 − deduction rate).
Deducted = gross × deduction rate.
Net + deducted = gross.
$$\\text{Net} = \\text{Gross} \\times (1 - r)$$$$\\text{Deducted} = \\text{Gross} \\times r,\\quad \\text{Net} + \\text{Deducted} = \\text{Gross}$$How to Use
- Enter the gross amount.
- Enter the combined deduction rate (%).
- View the net and the deducted amount.
At gross HK$30,000, net and deducted by deduction rate
| Deduction rate | Deducted | Net | Net share |
|---|---|---|---|
| 5% | HK$1,500 | HK$28,500 | 95% |
| 10% | HK$3,000 | HK$27,000 | 90% |
| 15% | HK$4,500 | HK$25,500 | 85% |
| 20% | HK$6,000 | HK$24,000 | 80% |
| 25% | HK$7,500 | HK$22,500 | 75% |
Net = 30,000 × (1 − rate). Each +5pp rate cuts take-home by 1,500. Net share = 1 − rate. Simplified single-rate; real tax is progressive, MPF capped.
Case Studies
Case 1: Salary with MPF — gross 45,000, deduct 5%
Ah Jun's monthly gross HK$45,000; only the 5% MPF employee contribution. Deducted = 45,000 × 5% = 2,250; net = 45,000 − 2,250 = 42,750.
He should budget on HK$42,750 (plus a tax reserve), not the HK$45,000 headline. Note: HK MPF mandatory is 5% but capped on relevant income (above the cap no extra); salaries tax is usually paid in instalments, not a fixed monthly rate — raise the rate or use the salaries-tax calculator to include tax.
Case 2: Freelancer — quote 80,000, platform fee 20%
A freelancer's quote (gross) HK$80,000, platform fee 20%. Deducted = 80,000 × 20% = 16,000; net = 80,000 − 16,000 = 64,000.
Gross-to-net is not just for salary — any 'total then deduct by %'. Freelancers should fold platform fee and tax into pricing; to actually net 80,000, use the net-to-gross calculator to mark the price up. Pair with the net-to-gross calculator.
FAQ
Gross vs net, what is the difference?
Gross is the amount before any deduction — the negotiated salary, total income, total return. Net is what you actually receive after deductions (MPF, tax, fees). The gap is the deductions. Always budget and compare on net (take-home), not the gross 'big number'. This calculator computes net and deducted in one go from gross and the rate.
What can I put in the deduction rate?
The deduction rate is a combined percentage you set — sum all items you want to deduct. Flexible uses: (1) salary deductions — MPF employee contribution, tax reserved, voluntary deductions (medical, provident), summed; (2) fees/commission — platform fee, agency commission, handling; (3) any proportional reduction — discount, shrinkage, reserve. Two notes: confirm each is a % of gross; if an item is a fixed amount or has caps (MPF cap, progressive tax), a single rate is only approximate; fixed amounts must be converted to a % or use a tool handling fixed deductions.
What to watch when estimating net pay?
This is a simplified proportional model, good for quick estimates but with caveats for real pay/tax. (1) Real deductions are often not a single fixed rate — HK salaries tax is progressive with allowances, so effective tax % varies with income; MPF is 5% but capped (monthly relevant income above HK$30,000 stops mandatory contribution, cap HK$1,500/month), so the MPF ratio falls at high pay. (2) Deduction bases may differ (some on gross, some on a remainder) — this calculator uses gross. (3) It is conversion, not authoritative tax/contribution math — for exact figures use IRD/MPFA or dedicated calculators. (4) Results round to 2 decimals, slight differences from statements possible. Use it to budget when you know a combined rate; it cannot replace precise tax or payroll calculation.
About what combined deduction rate for HK employees?
The combined rate is mainly MPF + salaries tax, but they differ. MPF employee contribution is 5% of relevant income, with a floor and cap (no contribution below the floor; above HK$30,000 no extra) — so the MPF ratio of total income falls at high pay. Salaries tax uses 2%–17% progressive or a 15% standard rate (lower), with allowances and concessions, so the effective rate is usually well below the marginal, near zero for low/mid incomes. To estimate monthly take-home, add MPF 5% (if uncapped) plus a conservative tax ratio; since tax is often paid in instalments, not monthly, a single monthly rate is only rough. For accuracy use the salaries-tax calculator for the year and spread it. Allowances/caps change with budgets — check IRD and MPFA.
Gross-to-net vs net-to-gross?
They are the two directions of the same conversion; pick by scenario. Gross-to-net (this) answers 'I know the gross, what is net?' — net = gross × (1 − rate). Common when you know the salary and want take-home after MPF/tax. Net-to-gross reverses it: 'I want/need a certain net, what gross is required?' — gross = net ÷ (1 − rate). Useful when: a freelancer prices a job to net a target after platform fee/tax; an employer sets gross to deliver a net pay; or comparing schemes on a common basis. Same variables, just swapped. This site also has a net-to-gross calculator for the reverse.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.