Calculating Net to Gross for wages.

A question about : Calculating Net to Gross for wages.

Hi

When I get my wages I get the net pay but what I would like to do is to be able to backwards calculate what my gross was before deductions.

Is their a program (freebie) out there that can do this for me or does someone have some good maths to show me

Best answers:

• Your payslip must show you what you have been paid gross (and how it has been calculated if it is not a standard amount every time). The deductions which lead to the nett amount should be shown too. You don't need to work it out from the amount you have received - get a proper payslip from your employer.
• I go to I-resign and it produces a clear breakdown.
  https://i-resign.com/uk/financialcent...calculator.asp
• It could be worked backwards in a spreadsheet or if someone wrote a program/web application to do it - but I don't actually know of one either apart from an actual payroll program (like Sage Payroll) which often have a net payments function.
  However, if you are only calculating in the basic rate band this could help:-
  1.) Work out the difference between your actual net pay from a payslip and the net pay figure you want to calculate from.
  2.) Divide the answer by 0.67.
  3.) Add or subtract that as appropriate to/from the gross pay on the payslip you used in Step 1.
  N.B. This will only work if all your figures stay in the basic rate band and 11% NIC band. If you know all the figures are over the higher rate threshold, you can use 0.59 in Step 2 instead.
  If I've confused you then an easier solution might be to use a net pay calculator like www.listentotaxman.com to trial and error gross pay figures until you get an approximate answer.
• if G= gross
  then
  net income =
  G-(G-5225-2230)x.22-223-(G-435)x.11
  so just solve the equation for G
  of course I'm assumimg you have no pension contributions and you are contracted in for SP2 and you earn more than 7455 and less than 39825 and have no benefits in kind or owe no back tax and are not above pension age.
• I know this is an old thread, but I thought I'd add another reason why you MIGHT want to calculate gross to net.
  I am currently calculating my household outgoings now versus what they will be once we complete a planned reduction in household costs. To put this into perspective, I want to work out how much better off i'd be, and liken it to the equivalent pay increase I would require to get the same benefit. Obviously the amount I save will be a net amount, after deductions, etc, so in order to see the true value of the savings as an equivalent 'pay rise', I need to gross it up.
  As an example, with nice simple (and not at all realistic figures):
  If I were earning Ј20/hour and my potential saving in the cost saving exercise was Ј100 per week, I wouldn't just have to work 5 hours to earn that Ј100, as that would be how much I would get AFTER tax. Using the link that was posted above (and manipulating the salary amount to work it backwards), I've worked out that Ј100 grossed up would actually be Ј146, which is actually more than 7 and a half hours extra to earn that Ј100 net.
  So, the benefit of working out a net to gross figure is that I can see I would have to work 50% more time (7.5, not 5 hours) to earn the same amount of net pay after tax.
• groosing up for MARGINAL earnings is different from grossing up for total earnings and very straight forward
• I use a program called Calcpay for wages and it will do calculations from net to gross. You can download it as a test program for 3 pay periods, so you would be able to do a check using it.