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