How the Annual Salary Calculator works
This calculator uses the standard pay-conversion formula: annual salary = hourly rate × hours per week × weeks paid per year. From that gross annual figure it derives your average monthly pay (annual ÷ 12), your biweekly paycheck (annual ÷ 26), and your weekly pay (rate × hours). The default of 52 paid weeks assumes year-round work; lower it if you take unpaid time off. All results are gross — before taxes and deductions.
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.