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Your Paycheck Is More Than the Headline Number

Understand gross pay, take-home pay, deductions, and why they differ.

First Job · 4 min

Step 1

Gross pay is your earnings before taxes and other deductions. Take-home pay is the amount that actually reaches you after deductions.

Deductions can include taxes, insurance, retirement contributions, and other benefits depending on your job.

For day-to-day budgeting, use the amount that actually arrives in your account rather than the headline salary or hourly-rate estimate.

Try this: Record take-home pay as Money In so your dashboard reflects money you can actually use.