Free Tool: Calculator

Gross-Up Calculator

Calculate the gross payment needed so a recipient nets a specific amount after taxes (payroll mode), or verify how a CAM gross-up clause increases your commercial lease charges (real estate mode).

What is a gross-up? In payroll, a gross-up means increasing a payment so the recipient nets a specific take-home amount after taxes are withheld. In commercial real estate, landlords gross up variable operating expenses to a higher hypothetical occupancy level before allocating costs to tenants.

Gross-Up Calculator

Net Amount ($)

Federal Income Tax Rate (%)

State Income Tax Rate (%)

FICA Rate (Social Security + Medicare) (%)

Gross-Up Analysis

Enter the net amount and tax rates above to calculate the gross-up.

When gross-up calculations matter

In payroll, employers gross up payments when they want an employee or contractor to receive a precise net amount. Holiday bonuses, severance, and relocation allowances are common examples. Without a gross-up, the intended amount shrinks after withholding.

In commercial real estate, gross-up provisions protect landlords from under-collecting when a building runs at partial occupancy. Variable expenses like janitorial, utilities, and management fees are multiplied up to a full-occupancy equivalent before each tenant's share is calculated. The threshold, methodology, and eligible expense categories are all defined in the lease, and errors in any of them create overcharges.

Use the Payroll / Tax tab for compensation planning and the Real Estate (CAM) tab to estimate the gross-up impact on your next CAM reconciliation.

Frequently Asked Questions

What is a gross-up calculation?

A gross-up calculation determines how much additional money to pay so that after taxes are withheld, the recipient receives a specific net amount. If you want to give someone a $5,000 bonus and they are in a 30% combined tax bracket, you would gross up to approximately $7,143 so that after 30% is withheld, they net $5,000.

How do you calculate gross-up for payroll?

Divide the desired net amount by one minus the total tax rate. For example: net = $5,000, tax rate = 30%. Gross-up = $5,000 / (1 - 0.30) = $7,142.86. The employee receives $5,000; the remaining $2,142.86 goes to federal and state income taxes and FICA.

What is CAM gross-up in real estate?

CAM gross-up in commercial real estate allows landlords to increase variable operating expenses to a higher hypothetical occupancy level, typically 95%, so that partial-vacancy costs are spread fairly. For example, if the building is only 75% occupied, the landlord can gross up expenses as if it were 95% occupied before calculating each tenant's pro-rata share.

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