Convert between hourly, weekly, monthly, and annual salaries. Calculate take-home pay, overtime earnings, and compare salary offers with comprehensive breakdowns.
Salary calculations involve converting between different pay periods and understanding the relationship between gross pay, taxes, deductions, and take-home pay. Whether you're comparing job offers or planning your budget, understanding these calculations helps you make informed financial decisions.
This calculator helps you convert between hourly wages and annual salaries, factor in overtime, benefits, and taxes to determine your actual take-home pay across different time periods.
Standard calculation: $25/hour × 40 hours × 52 weeks = $52,000
$52,000 ÷ (40 × 52) = $25/hour
Include overtime premium for hours over 40 per week
| Period | Hours (40 hr/week) | Hours (Full-time) | Calculation Method |
|---|---|---|---|
| Weekly | 40 | 40 | Standard full-time |
| Bi-weekly | 80 | 80 | 26 pay periods/year |
| Monthly | 173.33 | 173.33 | 2,080 hours ÷ 12 months |
| Annual | 2,080 | 2,080 | 40 hours × 52 weeks |
| Experience Level | Typical Range | Hourly Equivalent | Characteristics |
|---|---|---|---|
| Entry Level (0-2 years) | $35,000 - $50,000 | $17 - $24 | Recent graduates, minimal experience |
| Mid-Level (3-5 years) | $50,000 - $75,000 | $24 - $36 | Proven skills, some management |
| Senior Level (6-10 years) | $75,000 - $120,000 | $36 - $58 | Expert skills, leadership roles |
| Executive (10+ years) | $120,000+ | $58+ | Strategic roles, extensive experience |
| Aspect | Employee (W-2) | Contractor (1099) | Key Differences |
|---|---|---|---|
| FICA Taxes | 7.65% (employer pays half) | 15.3% (self-employment tax) | Contractor pays both portions |
| Benefits | Often provided | Self-funded | Health insurance, PTO, 401(k) |
| Tax Deductions | Limited | Business expenses | Equipment, travel, home office |
| Job Security | More stable | Project-based | At-will vs. contract terms |
Non-exempt employees must receive 1.5x regular rate
Overtime Eligibility: Non-exempt employees earning under $684/week ($35,568 annually) must receive overtime.
Exempt Employees: Salaried employees in executive, administrative, or professional roles may be exempt from overtime.
State Variations: Some states have daily overtime rules (8+ hours/day) or different thresholds.
| Benefit | Typical Value | Annual Cost | Tax Treatment |
|---|---|---|---|
| Health Insurance | $15,000 - $20,000 | Family coverage | Pre-tax premium |
| 401(k) Match | 3-6% of salary | $1,500 - $6,000 | Pre-tax contribution |
| Paid Time Off | 15-25 days | 6-10% of salary | Paid at regular rate |
| Life Insurance | 1-2x salary | $200 - $500 | First $50k tax-free |
Consider the complete package, not just base salary
Research Market Rates: Use salary surveys, job sites, and industry reports to understand competitive ranges.
Factor in Location: Cost of living varies significantly between cities and regions.
Consider Growth Potential: Evaluate promotion opportunities and skill development prospects.
Negotiate Beyond Salary: Additional PTO, flexible work, professional development, stock options.
| Metro Area | Median Salary | Cost of Living Index | Adjusted Value |
|---|---|---|---|
| San Francisco, CA | $120,000 | 180 | $67,000 equivalent |
| New York, NY | $100,000 | 150 | $67,000 equivalent |
| Austin, TX | $80,000 | 110 | $73,000 equivalent |
| Denver, CO | $75,000 | 105 | $71,000 equivalent |
| Atlanta, GA | $65,000 | 95 | $68,000 equivalent |
Annual Reviews: Document achievements and prepare for salary discussions with performance metrics.
Skill Development: Invest in certifications and training that increase your market value.
Career Progression: Understand typical advancement timelines and requirements in your field.
Multiple Income Streams: Consider side hustles, freelancing, or passive income opportunities.
Geographic Arbitrage: Evaluate remote work opportunities in higher-paying markets.
Forgetting About Taxes: Not accounting for the significant impact of taxes on take-home pay.
Ignoring Benefits Value: Focusing only on base salary without considering total compensation.
Overtime Assumptions: Expecting overtime that may not be guaranteed or available.
Not Planning for Expenses: Failing to budget for work-related costs like commuting, clothes, meals.