Free Payroll Calculator | Gross Pay & Net Pay | Desklog
Free Payroll Calculator

Payroll Calculator for Gross Pay, Deductions & Net Pay

Calculate employee payroll for hourly or salaried workers. Enter earnings, working hours, overtime, bonuses, deductions and other payroll adjustments to estimate gross pay and take-home pay in seconds.

Free to use Hourly & salary calculations Instant payroll breakdown
  1. 1Company Setup
  2. 2Employees
  3. 3Results & Slips
Company & Payroll Settings
Auto-fills for all employees. Editable per person.
Flat monthly deduction. Varies by state.
Pay Cycle
Statutory Deductions

Covers LOP deduction, PF at 12% of basic salary (capped at ₹1,800/month), ESI at 0.75% for employees up to ₹21,000 gross, professional tax, bonus and overtime additions, custom deductions like salary advance, and a salary slip per employee that can be previewed and mailed directly.

Payroll Basics

What Is a Payroll Calculator?

A payroll calculator helps estimate how much an employee should receive during a specific pay period.

It starts with regular earnings, adds overtime, bonuses, commissions and other eligible earnings, then accounts for taxes, leave adjustments, employee benefits and other deductions to calculate estimated take-home pay.

Whether you're checking one employee's paycheck or reviewing payroll before processing salaries, a payroll calculator gives you a clear breakdown of how gross earnings become net pay.

How to Use the Payroll Calculator

Estimate employee payroll in four simple steps.

1

Choose Pay Type

Select salary or hourly pay and choose the appropriate pay frequency.

2

Enter Earnings

Add salary or hourly wages, working hours, overtime, bonuses and other earnings.

3

Add Adjustments

Enter taxes, deductions, unpaid leave and eligible reimbursements.

4

Calculate Net Pay

Review gross earnings, deductions and estimated take-home pay.

How Do I Calculate Payroll?

Payroll is calculated by determining an employee's total earnings for the pay period and then applying relevant additions, adjustments, taxes and deductions.

Payroll Formula

Gross Pay = Regular Pay + Overtime + Bonuses + Commissions + Other Earnings
Net Pay = Gross Pay − Taxes − Employee Deductions + Reimbursements

The exact payroll calculation may vary depending on the employee's pay structure, working hours, attendance, benefits, deductions, tax requirements and company payroll policies.

How to Manually Calculate Payroll

Start by identifying the employee's pay frequency and regular earnings. Calculate salary or hourly wages for the pay period, then add overtime, bonuses, commissions and any other earnings.

Apply unpaid leave or loss-of-pay adjustments where necessary. Next, calculate applicable taxes, employee benefits and other deductions.

Net Pay = Gross Earnings − Total Deductions + Reimbursements

How to Calculate Annual Income, Monthly Income & Hourly Pay

How to Calculate Annual Income

For an employee with a fixed monthly salary:

Annual Income = Monthly Income × 12
$4,000 × 12 = $48,000 per year

For hourly employees:

Annual Income = Hourly Rate × Hours Per Week × Working Weeks Per Year
$25 × 40 × 52 = $52,000 per year

How to Calculate Monthly Income

Monthly Income = Annual Salary ÷ 12
$60,000 ÷ 12 = $5,000 per month

How to Calculate Hourly Rate From Salary

Hourly Rate = Annual Salary ÷ Total Working Hours Per Year

If an employee earns $40,000 annually and works 40 hours per week for 52 weeks:

$40,000 ÷ 2,080 = approximately $19.23 per hour

How to Calculate Yearly Salary From an Hourly Rate

Annual Salary = Hourly Rate × Weekly Hours × Working Weeks
Hourly Rate Weekly Gross Pay Annual Gross Income
$20/hour $800 $41,600
$25/hour $1,000 $52,000
$27/hour $1,080 $56,160
$30/hour $1,200 $62,400

Examples assume 40 working hours per week and 52 weeks per year before taxes and deductions.

Gross Pay vs Net Pay: What's the Difference?

What Is Gross Pay?

Gross pay is the total amount an employee earns before taxes and payroll deductions are removed.

It can include regular salary, hourly earnings, overtime, bonuses, commissions, incentives and other eligible earnings.

What Is Net Pay?

Net pay is the amount an employee receives after applicable taxes and payroll deductions have been removed.

It is commonly referred to as take-home pay.

Gross Pay $5,000
Taxes & Deductions − $1,100
Estimated Net Pay $3,900

How to Figure Out Payroll Deductions

Payroll deductions are amounts removed from an employee's gross earnings before their final paycheck is calculated.

Common deductions may include taxes and statutory deductions, insurance and employee benefits, retirement contributions, unpaid leave adjustments, salary-advance repayments and other authorized deductions.

Exact deductions depend on the employee, location, payroll requirements, benefits and company policies. For this reason, this calculator allows you to enter applicable deductions rather than assuming one fixed deduction percentage.

Payroll Calculator for Small Businesses & HR Teams

Quickly estimate payroll whether you're managing employees, processing salaries or checking your own paycheck.

Small Businesses

Estimate employee payroll without creating complicated spreadsheet formulas.

HR & Payroll Teams

Review earnings, overtime, attendance adjustments, bonuses and deductions.

Finance Teams

Check gross-to-net calculations and understand payroll costs more clearly.

Employees

Estimate paycheck amounts and understand how deductions affect take-home pay.

Payroll Management

Move Beyond Manual Payroll Calculations

Connect employee time, attendance, leave, overtime and payroll information in one streamlined workflow with Desklog.

Frequently Asked Questions

Payroll Calculator FAQs

Is there a free payroll calculator?

Yes. You can use this payroll calculator to estimate employee gross pay, deductions and net pay without creating manual payroll formulas.

Can I calculate payroll for hourly and salaried employees?

Yes. Choose salary or hourly pay and enter the appropriate earnings, working hours, payroll frequency, additional earnings and deductions.

How much tax is taken out of a paycheck?

There is no single tax percentage that applies to every paycheck. The amount can vary based on income, location, tax requirements, benefits and other payroll deductions.

Can the payroll calculator include overtime and bonuses?

Yes. Overtime pay, bonuses, commissions, reimbursements and additional earnings can be included when calculating gross and net pay.

How accurate is an online payroll calculator?

A payroll calculator can provide a useful estimate when accurate information is entered. Actual payroll may differ because of taxes, employee benefits, payroll policies, rounding and other adjustments.

Does pay frequency change annual salary?

Generally, pay frequency determines how annual earnings are divided across individual paychecks. Weekly, biweekly, semi-monthly and monthly schedules use different numbers of pay periods.

Is a payroll calculator the same as payroll software?

No. A payroll calculator estimates individual payroll amounts, while payroll software helps manage recurring processes such as employee records, attendance, salaries, deductions, payslips and payroll reporting.

Payroll Calculation Is Only the First Step

Connect working hours, attendance, leave, overtime, employee earnings and payroll in one streamlined workflow.