Bonus Calculator

1. Enter the base amount your bonus is based on, usually your salary.
2. Enter the bonus rate as a percentage.
3. Optionally enter a bonus tax rate to estimate withholding.
4. Read your gross bonus, the tax withheld and your net take-home.

Here is what each result means:

A bonus is extra pay on top of your regular salary, awarded for performance, as an annual reward, on signing, or to share company profits. It is usually expressed as a percentage of your salary or a fixed amount agreed in advance.

Bonuses are treated as income and are taxed, but the way tax is withheld can differ from your normal pay. That is why your bonus can look smaller in your bank account than the headline figure, and why estimating the net amount matters.

It multiplies your base by the bonus rate for the gross bonus, then applies the withholding rate you enter to estimate tax and take-home.

1. Multiply the base amount by the bonus rate divided by 100.
2. Multiply the gross bonus by the tax rate to get the withholding.
3. Subtract the withholding from the gross for your net bonus.

If you leave the tax rate blank, the calculator simply shows the gross bonus.

Suppose your salary is 50,000 and your bonus rate is 10%, with a 22% withholding rate.

Calculation: gross bonus = 50,000 x 10% = 5,000. Tax withheld = 5,000 x 22% = 1,100. Net bonus = 5,000 - 1,100 = 3,900.

The 22% figure is the common US flat withholding rate for supplemental wages. Your actual tax may be higher or lower once your full year of income is assessed.

A bonus is taxable income, but employers often withhold tax on it differently from your salary, which is why the take-home can surprise you.

In the US, many employers use a flat supplemental rate, commonly 22% for federal withholding, or add the bonus to a regular paycheck and withhold as if that were your normal pay. Social Security, Medicare, state and local taxes may also apply. Crucially, withholding is only an estimate collected up front; your real tax is settled when you file, so a large bonus can lead to a refund or a top-up. Other countries add the bonus to taxable income and tax it at your marginal rate.

Not every bonus works the same way, and the type affects how it is set and taxed.

Whatever the type, the calculator treats it as a gross amount and estimates the net. For your regular pay, use the salary calculator.

Why They Differ

The gross bonus is the headline figure; the net is what lands after withholding. The gap is the tax taken up front.

Withholding Is Not Your Final Tax

Up-front withholding is an estimate. Your true tax depends on your total annual income, so you may get some back or owe a little more.

Deductions Beyond Tax

Retirement contributions or benefits set as a percentage may also come out of a bonus, reducing the net further.

Before You Agree an Offer

Translate a bonus percentage into a real figure and its take-home value.

Planning What to Do with It

Know the net amount before you budget, save or invest a bonus. Compare returns with the ROI calculator.

Checking Your Payslip

Confirm the withholding on your bonus looks about right for the rate you expected.

1. Confusing Withholding with Final Tax

The rate withheld up front is not necessarily your true tax. It is reconciled when you file.

2. Forgetting Other Deductions

Social security, pension or benefit contributions can also reduce a bonus.

3. Using the Wrong Base

Make sure the base matches what the percentage applies to, salary or a specific figure.

4. Assuming 22% Everywhere

The 22% flat rate is a US supplemental convention. Other places tax bonuses at your marginal rate.

5. Spending the Gross

Budget from the net bonus, not the headline gross, to avoid a shortfall.

The arithmetic is exact for the figures you enter, but real bonus tax depends on details this estimate cannot see.

Multiply your base amount, usually your salary, by the bonus rate. A 10 percent bonus on a 50,000 salary is 50,000 x 0.10 = 5,000 gross. To find the take-home, subtract the tax withheld.

It depends on your country and employer. In the US, a common flat federal withholding rate for supplemental wages is 22 percent, plus Social Security, Medicare and any state tax. Other countries tax bonuses at your marginal rate.

It often is not; it just looks that way because up-front withholding on a bonus can be higher than on regular pay. Your true tax is settled when you file, so you may get some back.

The gross bonus is the amount before tax, while the net bonus is what you take home after withholding and any deductions. The calculator shows both.

The tax itself is the same in the end, but the withholding method can differ. Employers may use a flat supplemental rate or add the bonus to a normal paycheck, which changes how much is held up front.

Multiply your salary by the bonus percentage. Enter your salary as the base and the percentage as the rate above, and the calculator does it instantly.

Possibly. Because withholding is an estimate, if too much was taken relative to your total annual income you may receive a refund when you file. If too little was taken, you may owe a little.

Yes for the calculation: it is a gross amount taxed on receipt. Some signing bonuses must be repaid if you leave early, which is a separate contract term, not a tax matter.

No. The calculation runs entirely in your browser and nothing you enter is stored or sent anywhere unless you choose to Save a result, which stays only in this browser.

• Gross income explained (US SEC Investor.gov).
• Taxes and withholding basics (US SEC Investor.gov).
• How to calculate a percentage (Maths Is Fun).