How to use the Prorated Salary
Salary and pay calculators help you translate between pay periods, understand take-home after taxes, or evaluate job offers on a standardized basis.
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.
Helpful products for this plan
Tools that pair well with budgeting, forecasting, and money decisions.
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