Excel Template for Calculating Your Monthly Paycheck

Excel is very useful when calculating your monthly income. Below, you’ll learn how to use a spreadsheet to find your net income. Remember that net income is the amount you “take home”, or receive in your bank account.

Excel Instruction

Calculating Net Income

1.: Open Excel and set up your template by inputting all the factors that affect your monthly salary. These factors can vary depending on your employment contract, but usually this includes a fixed salary, overtime wages (can vary on different days), working hours and tax deductions.
2.: Input the number values for each factor into your setup.
3.: First, find your gross monthly income. This will depend on fixed salary and hourly wages. Subtract any relevant deductions. This is the basis for how much you have to pay in taxes. Your net income is the basis minus the taxes.

Example 1

You have a fixed salary of $ $3575$ per month. That’s equivalent to $ $22$ per hour. You receive an additional $40 %$ to your hourly rate when working overtime during weekdays, and $100 %$ when working overtime on Sundays. One month you work 15 hours overtime during the week and 6 hours overtime on Sundays. $35 %$ of your salary goes to taxes. What is your net income?

1.

Set up the template in Excel.

Spreadsheet in Excel presenting the template of income calculations

2.

Enter the numbers from your wage conditions mentioned above.

Spreadsheet in Excel presenting income input

3.

Calculate your gross salary. You know what your fixed income is, so you only need to calculate what you get for working overtime. Since the overtimes wages are different during the week and Sundays, you need to calculate these separately.

Note! Read more about growth factor if you are feeling uncertain about the formulas in the hourly wage cells.

You can now find your gross salary by summing your fixed income and your overtime pay.

The tax deduction will be the basis of deduction multiplied by the percentage of tax deduction.

Finally, you’ll find your net income by subtracting the tax deduction from your gross income.

Spreadsheet in Excel presenting income calculations

Here are the formulas of each cell:

Spreadsheet in Excel presenting formulas used

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