Net Distribution Calculator

Formula

The formula to calculate the Net Distribution (ND) is:

\[ ND = GD \times (1 - T) \]

Where:

$ ND $ is the net distribution
$ GD $ is the gross distribution ($)
$ T $ is the federal tax rate (%)

What is Net Distribution?

A net distribution is the total take-home distribution after taxes have been accounted for. It represents the amount of money you receive after the gross distribution has been reduced by the applicable tax rate.

Example Calculation

Let's assume the following values:

Gross Distribution (GD) = $10,000
Federal Tax Rate (T) = 20%

Using the formula to calculate the Net Distribution:

\[ ND = 10,000 \times (1 - 0.20) = 8,000 \]

The Net Distribution is $8,000.