Hourly to annual, gross to net.
Hourly to annual, gross to net.
Enter your annual salary or hourly wage and the calculator converts it to every useful time unit: hourly, daily, weekly, biweekly, monthly, and annual. It also estimates take-home pay after federal taxes. Use it when comparing job offers, evaluating a raise, converting between hourly and salaried positions, or understanding what a freelance rate actually works out to per year.
The tax estimate is based on federal rates only. Your actual take-home depends on state taxes, pre-tax deductions (401k, health insurance), FICA taxes (7.65%), and other withholding. Use it as a planning estimate, not a precise paycheck prediction.
Two job offers at the same base salary can have very different real values. A $75,000 offer with full health insurance, 4% 401(k) match, and 20 PTO days is worth significantly more than $75,000 with no benefits. When evaluating compensation, add the full benefits value:
The standard formula for full-time work (40 hrs/week, 52 weeks/year): hourly rate ร 2,080 = annual salary. A $25/hour job pays $52,000/year. But freelancers and contractors need to account for self-employment tax (15.3%), no paid time off, and no benefits โ a contractor hourly rate should be 25โ40% higher than an equivalent salaried position to break even after accounting for these costs.
Average annual salary growth in the US is 3โ5% for workers who stay in the same role. Switching jobs typically yields 10โ20% increases, which is why studies consistently show job-changers earn more over a career than those who stay put. Using this calculator to see the compounded effect of a 4% annual raise versus a 10% raise every few years can be eye-opening.
An advertised salary is a gross figure — the amount before anything is deducted. What lands in your account is typically 20–35% lower once income tax, national insurance or payroll taxes, pension contributions, and any benefit premiums come out.
This matters when comparing offers. A role paying 10% more with worse benefits and a higher-cost location can leave you materially worse off in real terms. The figure worth comparing is take-home pay adjusted for cost of living, not the headline number.
The conversions rest on a few standard assumptions:
A subtlety catches people out: a year contains 52.18 weeks, so biweekly pay produces 26 or occasionally 27 pay periods depending on how the calendar falls. In a 27-period year, each paycheque is slightly smaller if the annual salary is fixed — which surprises employees who assume a payroll error.
Similarly, a semi-monthly schedule (24 payments) and a biweekly one (26) are not the same thing, and produce different amounts per cheque for identical annual pay.
Total compensation is more than salary. Employer pension contributions are deferred pay and can be worth several percent. Health insurance premiums paid by an employer represent real money you would otherwise spend. Paid leave has a calculable value — five extra days is roughly 2% of salary.
Then there are the costs a job imposes: commuting time and expense, required equipment, and, for contract work, the self-employment taxes and unpaid time between engagements that an employee never sees. Contract rates typically need to be 25–40% above an equivalent salary to break even once these are counted.
The US median household income is approximately $75,000 as of 2025. Individual income varies widely by location โ $70,000 is comfortable in Tulsa, Oklahoma but tight in San Francisco. Cost of living-adjusted income is a more useful comparison than raw numbers across different cities.
Biweekly = every 2 weeks, resulting in 26 paychecks/year (2 months have 3 paychecks). Semi-monthly = twice per month, always 24 paychecks/year. Biweekly pay results in slightly larger individual checks; semi-monthly is more predictable for budgeting since it aligns with calendar months.
The 50/30/20 rule suggests 20% for savings and debt repayment. For retirement specifically, aim for 10โ15% of gross income including employer match. If you're starting late, 20%+ is needed to catch up. Even starting at 5โ8% and increasing by 1% annually builds strong long-term habits.