Author Topic: take home calculated  (Read 2846 times)

LAL

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take home calculated
« on: June 21, 2014, 06:06:27 AM »
How do people calculate take home pay?  Is it just wages - federal, state, SS, medicare taxes? Or do you add on to wages your capital gains so your AGI?

randymarsh

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Re: take home calculated
« Reply #1 on: June 21, 2014, 11:16:06 AM »
Typically when I use the term "take home pay", I'm referring to whatever amount is direct deposited into my account every 2 weeks. But 2 identical earners could very different numbers based on 401k contributions, insurance costs, withholding amounts, etc.

Joel

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Re: take home calculated
« Reply #2 on: June 21, 2014, 11:34:50 AM »
It sounds like you are trying to use this number to calculate something else? What exactly are your trying to accomplish?

LAL

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Re: take home calculated
« Reply #3 on: June 21, 2014, 04:22:23 PM »
Trying to calculate years to FI.  Our takehome is half of what we make salary and even less of income + bonus.  So i'm trying to figure out our savings rate.

milesdividendmd

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Re: take home calculated
« Reply #4 on: June 21, 2014, 04:33:29 PM »
This is a very controversial  area of mustachianism.

My personal approach to calculating savings % can be found here:

http://www.milesdividendmd.com/i-was-told-there-would-be-no-math/

And if you want to account for current savings or debt...

My post entitled "fuzzy math" may be helpful.

Hope that helps.




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brewer12345

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Re: take home calculated
« Reply #6 on: June 21, 2014, 05:22:54 PM »
If you want to translate $X/year to $Y in a paycheck, the calculators at www.paycheckcity.com are good.

LAL

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Re: take home calculated
« Reply #7 on: June 21, 2014, 09:31:33 PM »
Got it.  I finally managed to calculate our savings rate and it was a lot higher than I thought. I was doing it off of gross instead of net "take" home because our take home is so much lower than our gross. 

We're at 50% saving rate which is okay, but i'd like to be FI in 10 more years so we have to save more and cut expenses.  Very doable without the mortgage.