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.