Reviewed By: Scott Hickam (MBA, Finance)
Enter the gross distribution and the federal tax withholding percentage into the calculator to determine the net distribution.
Net Distribution Formula
The following formula is used to calculate a net distribution.
ND = GD * (1-T)
- Where ND is the net distribution
- GD is the gross distribution
- T is the federal tax rate
To calculate the net distribution, multiply the gross distribution by 1 minus the tax rate.
Net Distribution Definition
A net distribution is the total take-home distribution after taxes have been accounted taken out.
Net Distribution Example
How to calculate net distribution?
- First, determine the gross distribution.
Calculate the total gross distribution.
- Next, determine the tax rate.
Calculate the effective tax rate on the distribution.
- Finally, calculate the net distribution.
Calculate the net distribution using the formula above.
FAQ
What is a distribution?
A distribution is the disbursement of assets from a fund to it’s shareholder, typically on an annual basis.
