Gross pay is the starting number on every pay stub. Taxes, benefits, and retirement contributions are all subtracted from it to get your take-home pay, which is called net pay.
How gross pay is calculated
Hourly workers
Gross pay = (hourly rate × regular hours) + overtime pay + other earnings
Example: $22 an hour, 80 regular hours, and 4 overtime hours at time and a half in a two-week pay period:
| Earnings | Math | Amount |
|---|---|---|
| Regular | $22 × 80 | $1,760 |
| Overtime | $33 × 4 | $132 |
| Gross pay | $1,892 |
Salaried workers
Gross pay per paycheck = annual salary ÷ number of pay periods
| Annual salary | Weekly (52) | Biweekly (26) | Semimonthly (24) | Monthly (12) |
|---|---|---|---|---|
| $45,000 | $865.38 | $1,730.77 | $1,875.00 | $3,750.00 |
| $60,000 | $1,153.85 | $2,307.69 | $2,500.00 | $5,000.00 |
| $75,000 | $1,442.31 | $2,884.62 | $3,125.00 | $6,250.00 |
Convert any salary into hourly and per-paycheck pay.
Open the Salary to Hourly CalculatorWhat counts as gross pay
Gross pay usually includes:
- Regular wages or salary
- Overtime pay
- Bonuses and commissions
- Shift differentials and holiday pay
- Paid time off (vacation, sick days, holidays)
- Tips you report to your employer, which count as wages for tax purposes
Expense reimbursements, like mileage paid back under an accountable plan, are generally not wages and usually aren't part of taxable gross pay.
Gross pay vs. net pay
| Gross pay | Net pay | |
|---|---|---|
| What it is | Total earnings | What's deposited |
| Before or after deductions? | Before | After |
| Where you see it | Job offers, pay stub "Gross" line | Pay stub "Net pay" line, your bank account |
For a single filer earning $52,000 in 2026 with no pre-tax deductions, gross pay is $2,000 every two weeks while net pay is about $1,690.85 before state tax. See What Is Net Pay? for how that difference breaks down.
Where to find gross pay on your pay stub
Look for a line called Gross pay, Total earnings, or Gross earnings. Most stubs show two columns:
- Current: gross pay for this pay period
- YTD (year to date): total gross pay since January 1
Your W-2 at the end of the year may show a smaller wage number than your YTD gross. That's normal if you contributed to a traditional 401(k) or paid health premiums pre-tax, because those amounts are excluded from taxable wages.
When gross pay matters
- Comparing job offers. Offers are quoted in gross terms, so compare like with like. Then estimate net pay for each.
- Applying for loans or apartments. Lenders and landlords often ask for gross monthly income. A debt-to-income ratio, for example, usually uses gross income.
- Checking your paycheck. Make sure your hours and rate add up to the gross amount on your stub before looking at deductions.
Common questions
Is gross pay the same as salary?
Your salary is gross pay for the year. Your gross pay per paycheck is your salary divided by the number of pay periods, plus any extra earnings like bonuses.
Is gross pay before or after taxes?
Before. Taxes are subtracted from gross pay to get net pay.
How do I calculate gross monthly income from biweekly pay?
Multiply your biweekly gross pay by 26, then divide by 12. $2,000 every two weeks is $52,000 a year, or about $4,333 a month. Don't just multiply by 2; that misses the two extra paychecks in the year.