Learn how to calculate gross wages.

Grossing up a paycheck means to calculate the gross wages obtained from a specified net pay amount. We explain how to calculate gross wages.

To successfully calculate the gross from the net, you must know:

  • Net amount
  • Taxes to be withheld

The basic formula to gross up an amount is:
net amount + flat tax amounts / (100% - total percent of taxes) = Gross

An example

Assume the desired net pay amount is $200, and you want to withhold social security, medicare and $100 for federal income tax (FIT).

  1. Total the tax percentages.
    Social Security 6.2% + Medicare 1.45% = 7.65%
  2. Subtract the total from 100%
    100-7.65 = 92.35
  3. Convert that number to a percentage by moving the decimal two positions to the left
    0.9235
  4. Add $100 from FIT to the net
    $100 + $200 = $300
  5. Divide the new net amount by the amount in step
    300 / .9235 = 324.85
  6. The gross amount to be used is $324.85.
    The net amount will be $200 after withholding social security, Medicare, and $100 for FIT.