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?

  1. First, determine the gross distribution.

    Calculate the total gross distribution.

  2. Next, determine the tax rate.

    Calculate the effective tax rate on the distribution.

  3. Finally, calculate the net distribution.

    Calculate the net distribution using the formula above.


What is a distribution?

A distribution is the disbursement of assets from a fund to it’s shareholder, typically on an annual basis.

net distribution calculator
net distribution formula