How the Annual Pay Calculator works
This calculator converts any pay rate into an annual gross figure using the standard formula: annual pay = rate × number of pay periods per year. For hourly pay that means rate × hours per week × weeks worked per year; weekly pay is multiplied by your paid weeks; bi-weekly pay assumes 26 checks a year, semi-monthly 24, and monthly 12. From the annual total it then derives the matching monthly, weekly, and equivalent hourly figures so you can compare offers quoted in different units on the same footing.
Gross vs. take-home pay
Gross pay is what you're quoted. Take-home pay is what hits your bank account after federal income tax, FICA (Social Security 6.2% + Medicare 1.45%), state/local taxes, health insurance premiums, and retirement contributions. For most earners in median-tax states, take-home runs 65–75% of gross.
Converting between pay periods
- Annual → hourly: divide by 2,080 (52 weeks × 40 hours)
- Hourly → annual: multiply by 2,080
- Semi-monthly vs. bi-weekly: these aren't the same — bi-weekly gives 26 paychecks/year vs. 24 for semi-monthly, so two months a year have three bi-weekly checks
Comparing job offers
Normalize competing offers to annual take-home including benefits: add employer 401k match, health insurance value (often $6,000–$15,000/year), and any equity at fair value. A $10,000 higher base salary may be outweighed by a superior benefits package at the lower-paying offer.