Salary · 5 min read
Gross-to-net and net-to-gross, explained
Two calculations that look like mirror images but solve different compensation questions.
Gross-to-net asks what lands in your account. Net-to-gross asks how much salary an employer must offer to reach a desired take-home amount.
Gross-to-net
Start with contractual gross pay, subtract employee income tax and mandatory payroll deductions, then show the remaining annual and periodic net pay. This is the right direction for checking an offer.
Net-to-gross
Because progressive rates change at each band, there is no single multiplier. A calculator repeatedly tests gross amounts until the net result converges on the target. This is useful in salary negotiation and global mobility packages.