Our advanced Salary Calculator provides instant conversion between hourly, monthly, and annual pay, plus accurate tax calculations. Perfect for employees, freelancers, job seekers, and employers to understand compensation in any format.
Calculate Your Earnings
How to Use the Salary Calculator
Our calculator provides instant salary conversions and earnings estimates in three simple steps:
- Enter your pay information – Input your hourly rate or annual salary.
- Adjust parameters – Set your hours per week, weeks per year, and estimated tax rate.
- View results – See real-time conversions and take-home pay estimates.
Switch between calculation modes using the tabs to explore different scenarios, such as comparing a salaried job to hourly work.
Understanding Your Paycheck: A Guide to Deductions
The salary you are quoted for a job is your gross pay. However, the amount that lands in your bank account is your net pay, or take-home pay. The difference is due to various mandatory and voluntary deductions. Our calculator provides a simple take-home estimate, but here’s a deeper look at what’s typically withheld from your paycheck.
- Federal, State & Local Taxes: Mandatory taxes used to fund government services. The amount withheld depends on your W-4 form and where you live.
- FICA Taxes (Social Security & Medicare): A mandatory US federal payroll tax funding Social Security (6.2%) and Medicare (1.45%). Your employer matches these contributions.
- Pre-Tax Deductions: Voluntary deductions taken from your gross pay *before* taxes are calculated, lowering your taxable income. Examples include 401(k) contributions and health insurance premiums.
- Post-Tax Deductions: Deductions taken *after* taxes have been applied, such as contributions to a Roth 401(k) or union dues.
A Practical Guide to Salary Negotiation
Using a salary calculator is a critical first step before a job offer negotiation. Being prepared can significantly increase your starting pay and long-term earnings.
- Do Your Research: Use this tool and other resources to determine a realistic salary range for your role, experience, and location.
- Consider the Entire Package: Don’t focus only on base salary. There is often flexibility in other areas like a signing bonus, more vacation time, or remote work options.
- Build Your Case: Be prepared to articulate your value. Document your accomplishments and skills to justify your request.
- Get it in Writing: Once you’ve reached an agreement, ask for the final offer in writing to ensure there are no misunderstandings.
How Cost of Living Impacts Your Real Salary
A $75,000 salary in one city can feel very different from a $75,000 salary in another. This is due to the cost of living—the money needed for housing, food, and transportation in a specific location. Understanding this helps you evaluate how far your salary will actually go.
- Purchasing Power: A high salary in an expensive city may provide a lower standard of living than a more modest salary in a cheaper area.
- Evaluating Job Offers: When comparing offers in different cities, use a cost of living calculator to understand the “real” value of each offer.
- Remote Work: Be aware that some companies adjust salaries based on an employee’s location, so your pay might change if you move.
Frequently Asked Questions
Gross pay is your total earnings before any deductions. Take-home pay (net pay) is the amount you actually receive after taxes, insurance, retirement contributions, and other deductions have been subtracted. Our calculator estimates take-home pay based on the tax rate you provide.
Divide your annual salary by the number of weeks you work per year, then divide that result by the number of hours you work per week. For example: $60,000 annual salary ÷ 52 weeks = $1,153.85 weekly ÷ 40 hours = $28.85 per hour.
FICA (Federal Insurance Contributions Act) is a mandatory U.S. payroll tax that funds Social Security and Medicare. As you work and pay these taxes, you earn credits toward future benefits for retirement, disability, and healthcare.
Our calculator provides a strong estimate based on the single tax rate you input. However, actual take-home pay can be more complex, varying based on your tax filing status, state and local taxes, and specific pre-tax and post-tax deductions. For a precise figure, always refer to your official pay stub.
For consistent, guaranteed bonuses, you can add them to your annual salary for a total compensation view. However, if your bonuses are variable or performance-based, it’s generally better to calculate your base salary separately and consider bonuses as supplemental income.
For salaried employees, paid time off does not reduce your annual pay. For hourly employees, paid time off means you are paid for those hours even though you did not work. This calculator assumes you are paid for all weeks entered, so your annual gross pay remains accurate.
In most professional roles, yes. Most employers expect candidates to negotiate and often make an initial offer that has room for an increase. Negotiating demonstrates your confidence and understanding of your market value. Always remain professional and focus on the value you bring to the role.
Overtime is typically paid at 1.5 times (“time and a half”) your regular hourly rate for any hours worked beyond 40 per week. For example, if your regular rate is $20/hour, your overtime rate would be $30/hour. This calculator does not automatically compute overtime.
Absolutely! Freelancers can use the annual-to-hourly calculation to determine an appropriate project rate. When doing so, remember to use a higher “tax rate” percentage to account for self-employment taxes (which cover both the employee and employer portions of FICA), business expenses, and non-billable hours.
Bi-weekly pay means you are paid every two weeks, resulting in 26 paychecks per year. Semi-monthly pay means you are paid twice a month (e.g., on the 15th and 30th), resulting in 24 paychecks per year. This calculator uses the more common bi-weekly (26 pay periods) calculation.