I'm trying to make it so the white area (the N) is transparent and cuts a hole over the star image to reveal the black background behind it. I'm using Photoshop.

enter image description here

  • well, the simplest way is to make the N black ... or do you want to change the background? – Code 3 Feb 9 '16 at 20:23
  • @ErickP I feel like there's some way to achieve it with a clipping mask, but i'm stumped. – user59085 Feb 9 '16 at 20:25
  • @Code3 The background is actually going to be transparent as the image is going to be used for a sticker, so would need it 'cut out' – user59085 Feb 9 '16 at 20:26
  • ok, you can use a clipping mask if you want to fill the N with a different image background but not to cut it out ;) (see answer below) – Code 3 Feb 9 '16 at 20:30
  • @Code3 The mask will 'cut it out' if you have no layers underneath it. If you have an image it will show that instead. A mask is the most versatile because you can edit it later or get rid of it if you don't want it. – Tim Troiano Feb 9 '16 at 20:35

Using Advanced Blending Modes change the Knockout to either Shallow or Deep, either will work in this case and then drop your opacity:

enter image description here

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You should use a mask, see Adobe's quick overview on mask layers here: https://helpx.adobe.com/photoshop/using/masking-layers.html

Basically you use the selection of the text layer to 'mask' or hide parts of the star background. This mask can be modified later and it helps if you want to change the black background eventually.

I made this quickly to show you what I'm talking about (Apologies for the ancient version of Photoshop.)

Mask Example

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