Transparent compensation tools

Bonus Gross-Up Calculator

Work backwards from a target net bonus using your assumed withholding rate. See gross pay, deductions and rate-comparison scenarios.

Calculations run in your browser. Use one currency throughout; no exchange-rate conversion is performed.

Estimated gross bonus required

Last reviewed 10 September 2026

Why adding the percentage does not work

A gross-up starts with the amount you want left after an assumed deduction. The extra gross pay is also subject to that deduction, so simply adding the percentage to the desired net amount understates the required gross.

Gross bonus = target net bonus ÷ (1 − withholding rate)
Withheld amount = gross bonus − target net bonus

Enter a single combined rate that applies uniformly to the whole gross payment. The default 30% is an illustrative assumption, not a country’s tax rate. The tool does not look up tax brackets, income, filing status, payroll thresholds or employer taxes.

Worked example: a $5,000 net bonus

At an assumed 30% deduction, $5,000 ÷ 0.70 = $7,142.857… gross. That is approximately $7,142.86 gross and $2,142.86 withheld, leaving $5,000.00 after currency rounding. Simply adding 30% would give $6,500 gross and only $4,550 net.

The scenario table keeps the target net amount constant while changing the assumed withholding rate. This helps separate uncertainty in the rate from the fixed amount you are trying to model. A 0% rate returns gross equal to net; a rate of 100% cannot produce a positive net amount.

Where this model stops

A real payroll gross-up can cross wage bases or tax brackets, include deductions that are not percentages of gross, and require iteration. This fixed-rate model does not reproduce those systems. Withholding is also different from the final tax liability assessed on a return.

In the United States, the method for withholding on supplemental wages depends on the payment and payroll circumstances. See IRS Publication 15, Supplemental Wages for the current rules. Do not treat one federal withholding percentage as an all-in rate.

Employer cost may also include employer payroll contributions and other charges beyond this gross amount. No employer cost or legal entitlement is calculated here. Ask payroll to confirm the actual gross required for a guaranteed net payment.

Related calculations

Start with the gross bonus pay calculator if your award is defined as a percentage of salary. Use the signing bonus repayment calculator to compare service-based repayment rules. For performance factors and payout caps, use the bonus payout calculator.