After any paycheck deductions are removed, what remains is your take home pay. This is the amount of money you can use for your normal expenses, such as rent, groceries, utilities and discretionary purchases. Typical paycheck deductions include local, state and federal tax withholdings, employer payroll deductions and 401k contributions. Calculating your take home percentage allows you to apply it on smaller or larger scales, such as your hourly wage or annual salary.

1. Divide your gross pay by the amount you take home. As an example, If you earned $20 per hour and worked 80 hours during your two-week pay period, then your gross pay would be $1,600. If you only take home $1,200 of this gross pay, divide $1,200 by $1,600 to get 0.75.

2. Multiply this figure by 100 to convert it into percentage format. In this example, your take home pay is 75 percent of your gross pay.

3. Multiply this rate, in decimal format, by any time scale to calculate the amount you actually take home. In the example, multiplying 0.75 times your $20 hourly rate means you take home $15 for every hour you work. If you work 52 weeks per year without overtime, then your annual pay is $41,600, but your take home pay is $31,200 in total.

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