Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Paid leave benefits rarely replace full take-home pay, and the gap between the two is what actually determines whether a leave period creates real financial strain. A benefit that sounds generous as a percentage of salary can still leave a meaningful monthly shortfall once take-home pay, not gross salary, is the actual baseline being replaced.
Before you rely on it
What to check
Compare leave benefits against actual take-home pay, not gross salary, since benefits are typically calculated against a different, sometimes lower, base than what previously landed in a paycheck.
The common error
Where people go wrong with paid leave income gap calculator
Assuming a leave benefit described as a percentage of salary fully covers the same percentage of what previously came home in a paycheck. Benefits calculated against gross salary can leave a real gap once compared against actual prior take-home pay.
Sensitivity evidence
How weekly gross pay changes the estimated leave funding gap
| Weekly gross pay | Estimated leave funding gap | Estimated lost take-home pay | Total paid-leave benefits |
|---|---|---|---|
| $1,440 | $4,860 | $12,960 | $9,600 |
| $1,620 | $6,480 | $14,580 | $9,600 |
| $1,800worked example | $8,100 | $16,200 | $9,600 |
| $1,980 | $9,720 | $17,820 | $9,600 |
| $2,160 | $11,340 | $19,440 | $9,600 |
Every input, tested
Which input moves the estimated leave funding gap most
| Input | Tested from | To | Estimated leave funding gap at each end | Swing |
|---|---|---|---|---|
| Weekly gross pay | $1,620 | $1,980 | $6,480 to $9,720 | $3,240 (40%) |
| Weekly paid-leave benefit | $720 | $880 | $9,060 to $7,140 | $1,920 (24%) |
| Leave weeks | 11 | 13 | $7,550 to $8,650 | $1,100 (14%) |
| Effective tax rate | 23.0% | 27.0% | $8,532 to $7,668 | $864 (11%) |
| Added leave-period costs | $2,700 | $3,300 | $7,800 to $8,400 | $600 (7.4%) |
| Work costs avoided | $1,350 | $1,650 | $8,250 to $7,950 | $300 (3.7%) |
Two variables at once
Estimated leave funding gap by weekly gross pay and effective tax rate
| Weekly gross pay \ Effective tax rate | 21.0% | 25.0% | 29.0% |
|---|---|---|---|
| $1,440 | $5,551 | $4,860 | $4,169 |
| $1,620 | $7,258 | $6,480 | $5,702 |
| $1,800 | $8,964 | $8,100 | $7,236 |
| $1,980 | $10,670 | $9,720 | $8,770 |
| $2,160 | $12,377 | $11,340 | $10,303 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Weekly gross pay | $1,800 |
| Effective tax rate | 25.0% |
| Leave weeks | 12 |
| Weekly paid-leave benefit | $800 |
| Added leave-period costs | $3,000 |
| Work costs avoided | $1,500 |
| Estimated leave funding gap | $8,100 |
| Estimated lost take-home pay | $16,200 |
| Total paid-leave benefits | $9,600 |
Where the inputs come from
Weekly gross pay and the effective tax rate give your normal take-home pay. Leave weeks is the length of time off, and the weekly paid-leave benefit is what state programs, disability insurance or your employer will pay. Added leave-period costs include extra expenses such as childcare, medical bills or travel, and work costs avoided are commuting and other savings while you are off. Get the benefit amount from your state program or your employer's leave policy.
Using the estimated leave funding gap in a real decision
Ask your employer about the top-up of leave pay, use of accrued vacation and short-term disability.
When the result stops applying
Paid family leave programs differ greatly by state, in the percentage of wages paid, the maximum weekly benefit and the number of weeks. Federal law provides job protection but not pay. Benefits may be taxable. Employer policies and disability insurance can be coordinated with state benefits in complicated ways.
What to compare it with
See the maternity version on the maternity leave calculator, and the savings plan on the sinking fund and savings goal pages. The stay-at-home versus childcare and childcare break-even calculators cover ongoing costs after leave. The emergency fund page shows the cushion to hold.
People also ask
Frequently asked questions
Does federal law require paid leave?
No. The Family and Medical Leave Act gives up to 12 weeks of unpaid, job-protected leave for eligible employees, and paid leave comes from state programs or employers.
How do I find out what benefit I will receive?
Check your state's paid family leave program, your employer's policy and any short-term disability plan, and ask HR how they combine.
Should I save before leave?
Yes, if you can. Estimate the gap and save it in advance, since even partial pay leaves a shortfall.