Author Topic: take home calculated  (Read 4094 times)

LAL

  • Stubble
  • **
  • Posts: 155
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

  • Handlebar Stache
  • *****
  • Posts: 1369
  • Location: Denver
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

  • Pencil Stache
  • ****
  • Posts: 887
  • Location: California
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

  • Stubble
  • **
  • Posts: 155
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

  • Handlebar Stache
  • *****
  • Posts: 1913
  • Location: Portlandia
    • Miles Dividend MD
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.




arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28444
  • Age: -997
  • Location: Seattle, WA
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

brewer12345

  • Handlebar Stache
  • *****
  • Posts: 1381
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

  • Stubble
  • **
  • Posts: 155
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.