💰 Salary Calculator

To convert hourly wage to annual salary, multiply your hourly rate by the number of hours you work per week, then multiply by 52 weeks. For example: $25/hour × 40 hours/week × 52 weeks = $52,000/year. Don't forget to account for unpaid time off or part-time schedules.

Gross salary is your total earnings before any deductions. Net salary (take-home pay) is what you actually receive after taxes, Social Security, Medicare, health insurance, retirement contributions, and other deductions are taken out. Typically, net salary is 70-80% of gross salary depending on your tax bracket and deductions.

Overtime pay is typically calculated at 1.5 times your regular hourly rate for hours worked beyond 40 in a week. For example, if you earn $20/hour, your overtime rate would be $30/hour. Some employers offer double time ($40/hour in this example) for holidays or excessive overtime. Salaried exempt employees typically don't receive overtime pay.

The standard full-time work year is 2,080 hours (40 hours/week × 52 weeks). However, this doesn't account for holidays, vacation, or sick days. A more realistic number accounting for 2 weeks of vacation and 10 holidays is approximately 2,000 hours per year.

Both have advantages. Salaried positions often come with benefits like paid time off, health insurance, and retirement plans. Hourly positions offer overtime pay and more flexibility. When comparing offers, convert everything to the same time period (annual) and factor in benefits, overtime potential, work-life balance, and career growth opportunities.

Divide your annual salary by the number of hours you actually work per year. For example, if you earn $60,000 and work 50 hours/week for 50 weeks (2,500 hours), your effective hourly rate is $24/hour. This helps you understand your true compensation, especially if you regularly work overtime without additional pay.

Common paycheck deductions include: Federal income tax (varies by bracket), State income tax (varies by state), Social Security (6.2%), Medicare (1.45%), health insurance premiums, retirement contributions (401k, IRA), HSA/FSA contributions, and potentially union dues or garnishments. Your employer provides a detailed breakdown on your pay stub.