Personal Finance

Salary & Hourly Pay Calculator

Convert annual salary to hourly, daily, weekly, and monthly. Model take-home pay after taxes in seconds.

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Salary Calculator

Convert between hourly, weekly, monthly & annual pay

Your Income

Pay Period

Hours per Week

Weeks per Year

Salary Guide

How do I convert hourly to annual salary?

Multiply your hourly rate by hours per week, then by weeks worked per year. For a standard 40-hour workweek with 52 weeks: hourly × 40 × 52. A $25/hour rate equals $52,000/year.

What is a bi-weekly pay period?

Bi-weekly means you're paid every two weeks — 26 paychecks per year. This differs from semi-monthly (twice per month, 24 paychecks). Bi-weekly is the most common pay frequency in the US.

Does this include taxes?

This calculator shows gross pay (before taxes). Your take-home (net) pay depends on your tax bracket, filing status, deductions, and state taxes. Federal income tax alone typically ranges from 10%–37% depending on income level.

Finance Guide

Salary Calculator Guide: Hourly to Annual, Gross to Net, and What an Offer Is Really Worth

A practical guide to converting between hourly, weekly, monthly, and annual pay, understanding gross vs. net income, and evaluating what a salary offer actually pays after taxes, benefits, and real hours worked.

Written by Calculixy Editorial TeamReviewed by a Certified Compensation Professional (CCP)Updated: May 2026

From the Underwriting Desk

Salary is one of the most-discussed and least-understood numbers in personal finance. A $90,000 annual salary, a $45/hour contractor rate, and a $7,500/month gross figure can all describe roughly the same person's pay — but they look very different in conversation, on a job offer, or in a mortgage application. The Salary Calculator's job is to translate freely between those representations so you can compare offers, plan budgets, and answer the most important question accurately: what is your time actually worth?

What this calculator does

The Salary Calculator converts between any common pay periods — hourly, daily, weekly, biweekly, semi-monthly, monthly, and annual — based on standard work-week assumptions. It accepts any input and produces every other equivalent. Use it to compare a $30/hour contract offer against a $62,400 salary, to figure out what your monthly take-home is from an annual offer, or to convert an old part-time hourly wage into the equivalent annual income.

The calculator works on gross pay (before taxes and deductions) unless you specify deductions. Net pay — what actually lands in your bank account — requires additional information about your tax bracket, retirement contributions, health insurance, and other withholdings. The calculator gives you the framework; you'll need your most recent paystub to estimate net.

When to use this calculator

To compare salaried job offers expressed in different pay periods
To evaluate a contract or freelance hourly rate against your current salary
To convert annual salary to biweekly or semi-monthly for budgeting
To figure out your effective hourly rate as a salaried employee (revealing whether you're underpaid for the hours you work)
To estimate gross income for loan or mortgage applications
To plan a savings rate as a percentage of gross income

The salary conversion formulas

Every conversion comes back to one anchoring assumption: how many hours are in a "full-time" work year.

Standard full-time year = 40 hours/week × 52 weeks = 2,080 hours Hourly to Annual: Annual = Hourly × 2,080 Annual to Hourly: Hourly = Annual ÷ 2,080 Annual to Monthly: Monthly = Annual ÷ 12 Annual to Biweekly: Biweekly = Annual ÷ 26 Annual to Semi-monthly: Semi-monthly = Annual ÷ 24 Annual to Weekly: Weekly = Annual ÷ 52

Variable definitions

Hourly rate = Amount paid per hour worked
Hours per week = Standard assumption is 40 for full-time
Weeks per year = Standard assumption is 52, though many salaried employees effectively work fewer due to PTO and holidays
Annual salary = Total pre-tax compensation over a 12-month period
Biweekly = Every two weeks (26 pay periods per year)
Semi-monthly = Twice a month (24 pay periods per year)

Biweekly vs. semi-monthly: These are not the same. Biweekly = every two weeks = 26 paychecks per year. Semi-monthly = twice a month = 24 paychecks per year. The math affects budgeting — biweekly periodically delivers three paychecks in a month, while semi-monthly always delivers two.

Step-by-step example

You receive a job offer for $85,000/year. You want to know the equivalent hourly rate, monthly pay, and biweekly paycheck — and what it means for your budget.

Annual to hourly:

$85,000 ÷ 2,080 = $40.87/hour

Annual to monthly:

$85,000 ÷ 12 = $7,083/month gross

Annual to biweekly:

$85,000 ÷ 26 = $3,269 gross per biweekly paycheck

Annual to weekly:

$85,000 ÷ 52 = $1,635 gross per week

Now convert to estimated net (take-home) pay. A rough estimate for a single filer earning $85,000 in a state with no state income tax: 22% federal marginal rate, 7.65% FICA (Social Security + Medicare), and zero state tax. Combined effective rate is approximately 22%–25% depending on deductions.

Estimated net annual ≈ $85,000 × 0.75 = $63,750 Estimated monthly net ≈ $5,313 Estimated biweekly net ≈ $2,452

This is gross-to-net at a high level. Your real net depends on 401(k) contributions, health insurance premiums, HSA contributions, state income tax, and other deductions that come out before take-home.

Gross vs. net pay: what's actually in your paycheck

Gross pay

Your salary before any deductions. This is the number on your offer letter, in your contract, and on the top line of your paystub.

Federal income tax

Progressive — your effective rate depends on filing status, deductions, and total income. For 2025, single filers face 10%, 12%, 22%, 24%, 32%, 35%, and 37% marginal rates as income climbs. Most middle-income earners pay an effective federal rate of 12%–18%.

FICA (Social Security + Medicare)

7.65% of wages up to the Social Security wage cap ($168,600 in 2024), then 1.45% Medicare-only above that, plus 0.9% additional Medicare tax above $200,000 single / $250,000 married.

State and local income tax

Varies dramatically. California: 1%–13.3% marginal. Texas, Florida, Nevada, Washington: 0%. New York City: state + city combined can exceed 10%.

Pre-tax deductions

401(k) contributions, traditional IRA contributions, HSA contributions, FSA contributions, health insurance premiums, and some other benefits reduce your taxable income. A $5,000/year 401(k) contribution at a 22% marginal rate reduces your tax bill by $1,100 — making your effective salary higher than the post-deduction number suggests.

Post-tax deductions

Roth 401(k) contributions, Roth IRA contributions, union dues, court-ordered garnishments, voluntary insurance premiums.

Quick estimate: For most W-2 employees with no state income tax, expect 22%–28% combined deductions on gross pay. With state income tax, expect 26%–35%. High earners in high-tax states can see effective combined rates above 40%.

The "effective hourly rate" trap for salaried employees

A $100,000 salary divided by 2,080 standard hours is about $48/hour. But salaried employees frequently work more than 40 hours per week — sometimes much more.

If you actually work 50 hours per week, your effective hourly rate drops:

40 hours/week: $100,000 ÷ 2,080 = $48.08/hour
45 hours/week: $100,000 ÷ 2,340 = $42.74/hour
50 hours/week: $100,000 ÷ 2,600 = $38.46/hour
60 hours/week: $100,000 ÷ 3,120 = $32.05/hour

The most common compensation realization for salaried workers in their 30s is that they're earning less per hour than they did in their 20s as hourly employees. Calculating your effective hourly rate against your real hours worked sometimes argues for changing roles, changing employers, or negotiating differently.

Real-world use cases

1. Comparing job offers

Two offers: $85,000 salary at Company A with 4 weeks PTO, vs. $90,000 salary at Company B with 2 weeks PTO. The $90,000 offer looks better — until you convert both to effective hourly rate including PTO. The Company A offer at 48 paid working weeks is $85,000 ÷ 1,920 = $44.27/hour. The Company B offer at 50 paid working weeks is $90,000 ÷ 2,000 = $45.00/hour. Closer than the headline suggests — and tipped further toward A when you factor in the value of additional time off.

2. Contract or freelance rate setting

If you want to earn the equivalent of a $90,000 W-2 salary as a contractor, you can't just charge $43.27/hour ($90,000 ÷ 2,080). Contractors pay self-employment tax (15.3% vs. an employee's 7.65%), get no employer-paid benefits, and have unpaid time off. A common rule of thumb: contract rate should be 1.5×–2× the equivalent salary's hourly rate. For $90,000 W-2 equivalence, charge $65–$85/hour.

3. Calculating effective hourly rate at work

Log your actual hours worked over four weeks. Divide your annual salary by (actual weekly hours × 52). The result is what you actually earn per hour. If it's below your local market rate for similar work, you have leverage in negotiations.

4. Budgeting biweekly paychecks

Annual budgeting based on monthly income is straightforward. Biweekly pay schedules introduce "three-paycheck months" — usually twice per year — which can either fund savings goals or get spent unintentionally. Use the calculator to identify those months and plan accordingly.

5. Mortgage and loan qualification

Lenders ask for gross monthly income. Your salaried offer is annual, but the lender wants the divided-by-12 number. The calculator converts cleanly. Pair with our Mortgage Calculator to see what loan you can support at your gross income.

Common mistakes

Comparing only gross pay between offers. Different employers have different benefits packages — health insurance subsidies, 401(k) matches, PTO, equity. Total compensation can differ by tens of thousands at the same nominal salary.
Ignoring the cost of benefits. If your $80,000 offer includes free health insurance and your competing $85,000 offer has a $400/month employee contribution, the first offer effectively pays more.
Treating contractor and employee rates as equivalent. A $50/hour contract is not equivalent to a $50/hour employee position. The contractor pays both halves of FICA, gets no PTO, no employer-paid health insurance, no 401(k) match.
Assuming 2,080 hours is your real work year. 2,080 is the formal definition of full-time. With holidays, PTO, sick days, and personal days, most US salaried employees work 1,800–1,950 hours actually paid. Hourly employees vary widely.
Forgetting to factor in bonuses. A $90,000 base with a 15% bonus paid annually is functionally a $103,500 total compensation package. A $100,000 base with no bonus is closer to that than the salaries alone suggest.
Confusing gross with take-home. "I make $90,000" usually means gross. Take-home for that salary is closer to $63,000–$72,000 depending on state, deductions, and contributions.
Not adjusting for cost of living. $90,000 in Bismarck, ND is meaningfully more income than $90,000 in San Francisco or NYC. Comparing offers across cities requires cost-of-living adjustment, not just nominal comparison.

Frequently asked questions

How do I convert hourly to annual salary?

Multiply hourly rate by 2,080 (40 hours × 52 weeks). $25/hour = $52,000/year. This is the standard full-time conversion; adjust if you work fewer hours per week or take significant unpaid time off.

What's the difference between biweekly and semi-monthly?

The two pay schedules produce different paycheck counts. Paying every two weeks yields 26 paychecks a year, while paying twice a month (typically the 1st and 15th) yields 24. That difference is why a biweekly schedule produces two months each year with three paychecks, whereas a semi-monthly schedule always has exactly two per month.

What's a "good" salary?

Depends entirely on location, industry, experience, and family situation. The US median household income is around $75,000. The median individual income is closer to $42,000. The Bureau of Labor Statistics publishes detailed median wages by occupation and metro area — use those as benchmarks for your specific role.

How do I estimate my take-home pay?

For a rough estimate, multiply gross by 0.72–0.78 depending on state taxes. For a precise estimate, use a paycheck calculator that accounts for filing status, state, allowances, and deductions. Your most recent paystub provides the most accurate base for projecting forward.

Should I take a higher salary or better benefits?

Calculate the dollar value of the benefits difference. Strong health insurance, generous PTO, 401(k) match, and stock can easily add $15,000–$30,000 of effective value. A $80,000 offer with $25,000 in better benefits beats a $100,000 offer with worse benefits, even though the salary looks smaller.

What is "total compensation"?

Salary + bonus + equity + employer benefits (401(k) match, health insurance subsidy, etc.) Some companies provide a Total Rewards statement annually that breaks down all components. When negotiating, focus on total compensation — not just base salary.

How do I negotiate a salary increase?

Research the market rate for your role (Glassdoor, Levels.fyi, salary.com), document your specific contributions and impact, present a number 10–15% above your target to leave room for negotiation, and be prepared with a fallback ask (more PTO, remote flexibility, equity) if the salary number can't move.

What if I'm paid on commission or with bonuses?

For budgeting, use base salary only. For mortgage and loan qualification, lenders typically require 2 years of W-2s showing consistent commission/bonus income before counting it. Variable income is real income, but plan as if it isn't until it's reliable.

Related Calculixy calculators

From the editorial desk: The most useful thing a salary calculator does is force precision into a number that gets thrown around casually. "Six figures" sounds great until you realize it's $48/hour at 40 hours, $38/hour at 50 hours, or $32/hour at 60 hours. Knowing what your actual hourly rate is — not what your offer letter says — is the start of negotiating, switching jobs, or being content with where you are.

Calculixy's Salary Calculator provides estimates for educational use only. It does not constitute tax or financial advice. Actual take-home pay depends on federal, state, and local tax law, your filing status, your deductions, and many other factors. Consult a tax professional for personalized guidance. All calculations run locally in your browser; Calculixy does not collect or transmit the values you enter.