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how do you calculate a gross pay amount?

If you are in a 28% tax bracket, and you want a check to equal (net) $10,000, what formula do you use?

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1 Answer

Assuming the only difference between your gross and net amounts is the tax, then in general:

Net is what you have after you subtract tax, or net = gross - tax.  The tax amount = gross * tax rate, or (gross*0.28)

Net = Gross - (Gross * tax rate).  For your example, express the 28% as 0.28

10000 = Gross - (0.28)(Gross);  1000 = 0.72 Gross

Divide both sides by 0.72:  Gross = $13,888.89



Thank you.  now, it seems so obvious, but I am bad at algebra, so I was making it complicated.