Bonus Calculator

Calculate a performance bonus and what lands in your pocket after tax.

What the Bonus Calculator does

Bonuses are often quoted as a target percentage of salary, then scaled by a performance multiplier. Many jurisdictions withhold tax on bonuses at a flat supplemental rate, which can differ from your regular withholding.

Formula

  • Gross bonus = Target bonus × Performance multiplier
  • Target bonus = Salary × Bonus percentage (or a fixed amount)
  • Net = Gross − Tax withheld

Inputs explained

InputUnitRequiredNotes
Annual salaryselected currencyYesAccepts more than 0.
Bonus typeone of 2 optionsYes
Bonus percentage%In some modesShown Bonus type is Percentage of salary.
Bonus amountselected currencyIn some modesAccepts more than 0. Shown Bonus type is Fixed amount.
Performance multiplier%Optional100% means target was met exactly.
Tax withholding rate%Optional
Currencyone of 10 optionsOptional

How to use it

  1. Choose Bonus type and Currency.
  2. Enter Annual salary.
  3. Fill in the remaining inputs the form shows for your choice.
  4. Optionally add Performance multiplier and Tax withholding rate.
  5. Select Calculate.

Worked example

$85,000 salary, 15% target bonus, 120% performance, 22% withholding.

Salary
85000
Rate
15
Performance
120
Tax
22

Gross $15,300, net $11,934.

Frequently asked questions

Why is my bonus taxed so heavily?

Many payroll systems withhold bonuses at a flat supplemental rate rather than your marginal rate. If it over-withholds, you get the difference back when you file.

Related calculators