Gross bonus pay

Bonus Pay Calculator

Enter your salary and bonus percentage for an instant gross figure. Below the calculator: the full formula, what payroll actually withholds, and why the amount that reaches your account is smaller than the one on your plan statement.

Last reviewed 20 August 2026

Gross bonus from salary
Gross estimate used

Educational estimate only. This is not payroll, tax, legal or HR advice.

How to calculate a bonus

Bonus = Annual salary × Target bonus %

That is the whole calculation for a straightforward plan. A $70,000 salary with a 10% target bonus produces a $7,000 gross bonus. Everything else that happens to that number — performance multipliers, proration, caps — is applied on top of it.

Salary5%10%15%20%
$50,000$2,500$5,000$7,500$10,000
$70,000$3,500$7,000$10,500$14,000
$100,000$5,000$10,000$15,000$20,000
$150,000$7,500$15,000$22,500$30,000
This is a gross figure. Payroll withholding is applied afterwards and is often heavier on a bonus than on regular pay. The section below explains why.

Related tools and next steps

Bonus pay questions

How do you calculate bonus pay?

Multiply annual base salary by the target bonus percentage. A $70,000 salary with a 10% target gives $7,000 gross. If the plan has a performance multiplier, apply it next; if you did not work the full period, prorate; if there is a cap, apply it last.

How much is a 10% bonus on $70,000?

$7,000 gross, before any performance multiplier and before tax. At typical US withholding on supplemental wages, roughly $4,600 to $4,900 of that reaches your bank account.

Is bonus pay calculated on gross or net salary?

On gross base salary, before tax and deductions. Overtime, allowances, previous bonuses and employer pension contributions are normally excluded unless your plan document says otherwise.

Why was my bonus taxed so heavily?

In the United States, bonuses are supplemental wages and are commonly withheld at a flat 22% federal rate plus state tax and FICA, which can exceed your usual marginal rate. You recover any over-withholding when you file. In the UK, PAYE annualises the bonus month, which usually corrects itself later in the tax year.

Is this gross or take-home bonus pay?

Gross. This calculator estimates the bonus before tax, withholding, pension, benefits or any other payroll deduction.

When should I use the bonus payout calculator instead?

When your plan involves a performance multiplier, a company or team factor, a threshold, a scorecard or a cap. This page handles the simple salary-times-percentage case.

Can I calculate a fixed bonus amount?

Yes. If you already know the cash amount, enter it in the fixed bonus field and the calculator will use it as the gross estimate instead of deriving one from salary.

Do I get a bonus if I leave before it is paid?

Often not. Many plans require you to be employed, and not under notice, on the payment date - which can be months after the performance year ends. Check the employment condition in your plan document.

Reviewed 20 August 2026 by the BonusPayCalc editorial team. Gross planning estimates only — not payroll, tax, legal or HR advice. See methodology for how formulas are chosen, or report a correction.

Four questions that change the answer

The salary × percentage formula is the starting point, not the finish. Four things commonly move the number, and they are the reason two people on identical salaries with identical target percentages receive different bonuses.

1
Is the percentage a target or a guarantee? Almost always a target. It is what the plan pays at exactly 100% performance, and most years land somewhere either side of it. A “10% bonus” in an offer letter means a 10% opportunity.
2
Which salary does it apply to? Usually gross base salary at a snapshot date, excluding overtime, allowances and last year’s bonus. If you had a pay rise in October, check whether the plan uses your December salary or a time-weighted average — the difference can be several hundred dollars.
3
Did you work the whole period? Joiners, leavers, unpaid leave and part-time hours all prorate the bonus. Nine months of a twelve-month plan is 75%. See proration explained.
4
Is there a performance multiplier or a cap? If the plan mentions a company factor, an individual rating, a threshold or a cap, this page is too simple for it. Use the bonus payout calculator or the STIP calculator instead.

Why the bonus in your bank account is smaller

This is the single most common surprise with bonus pay, and it is not an error. A bonus is taxable employment income, and in several countries payroll treats it differently from regular salary.

United StatesBonuses are “supplemental wages”. Employers commonly withhold a flat 22% federal rate on amounts up to $1 million (37% above that), plus state tax, Social Security and Medicare. If your normal marginal rate is 12%, the bonus looks over-taxed — you get the difference back when you file.
United KingdomPAYE treats the bonus month as if you earned that much every month, which can push the payment into a higher band and, above £100,000, into the personal-allowance taper. It usually self-corrects across the tax year.
EverywherePension and retirement contributions are frequently deducted from bonus pay at your normal percentage, which reduces the cash further while increasing what you keep long term.
A rough rule for planning: in the US, expect roughly 60–70% of the gross figure to reach your account after federal, state and payroll taxes. In the UK, expect roughly 55–65% for a higher-rate taxpayer after tax, National Insurance and pension. These are planning approximations, not tax calculations — your own position will differ.

Worked examples

Straightforward target bonus. Salary $70,000, target 10%, full year worked, plan paid at 100%.

Result
$7,000 gross

70,000 × 10% = $7,000. At a 22% US supplemental rate plus roughly 7.65% FICA and state tax, roughly $4,600–$4,900 reaches the account. Educational gross estimate only.

Above-target year. Same salary and target, but the plan paid at 115%: 70,000 × 10% × 1.15 = $8,050.

Mid-year joiner. Same salary and target, started 1 July, plan paid at 100%: 70,000 × 10% × 6/12 = $3,500.

Working backwards. You received $9,600 and your salary is $80,000. Your effective bonus was 12% of salary. If your target was 10%, the plan paid at 120% — use the bonus multiplier calculator to separate the target from the multiplier.

What counts as a good bonus percentage

LevelTypical target bonus
Entry level and administrative0–5% of salary
Professional / individual contributor5–15%
Manager10–20%
Senior manager and director20–40%
VP and executive50–100%+

These are broad market ranges, not a benchmark for any specific employer. The more useful question at an interview is not “what is the target?” but “what did the plan actually pay for the last three years?” — a 20% target that consistently pays at 60% is worth less than a 12% target that reliably pays in full.