Take-Home Pay

Take-Home Pay – A financial term dealing with salaries, earnings from work/employers. Take-home pay is the pay that actually makes it home, once any and all deductions to your pay have been assessed and made. Also referred to as net pay. Over a period of a year, it is seen as net income. What you can budget, borrow and afford, can be calculated from this number. Gross pay (before deductions) is not a good starting point – the cash-in-pocket, the better measure for these activities.