Salary Calculator

About the Salary Calculator

The Salary Calculator helps you convert between different pay periods and understand your true earnings potential. Whether you're paid hourly, weekly, or monthly, this calculator allows you to see your equivalent income across all common pay periods. It also helps you understand how taxes and other deductions affect your take-home pay.

How to Use This Salary Calculator

1. Pay Rate: Enter your current compensation amount.
2. Pay Period: Select how often you currently receive this pay (hourly, weekly, monthly, etc.).
3. Hours per Week: Enter how many hours you work in a typical week.
4. Work Days per Week: Enter how many days you work in a typical week.
5. Vacation Days per Year: Enter your annual paid vacation days.
6. Include Deductions: Toggle this on to include taxes and other deductions in your calculation.
7. Deduction Information: If you've toggled on deductions, enter your tax rates and other deductions.
8. Click "Calculate Salary" to see your results.

Understanding Your Salary Results

The calculator shows your equivalent pay rate across different pay periods:

• Hourly Rate: Your pay per hour worked.
• Daily Rate: Your pay per workday, based on your hours per day.
• Weekly Rate: Your pay per week, based on your hours per week.
• Bi-weekly Rate: Your pay for two weeks (common pay period in many companies).
• Semi-monthly Rate: Your pay for half a month (typically paid on the 15th and last day of month).
• Monthly Rate: Your pay per month.
• Quarterly Rate: Your pay for three months.
• Annual Rate: Your yearly salary before taxes and deductions.

If you included deductions, you'll also see:

• Gross Annual Salary: Your total yearly earnings before any deductions.
• Breakdown of Deductions: How much is taken out for taxes, retirement, health insurance, etc.
• Take-Home Pay: Your actual earnings after all deductions, shown in annual, monthly, and bi-weekly amounts.

Pay Period Conversions Explained

Common Pay Period Definitions

• Hourly: Paid for each hour worked.
• Daily: Paid a set amount per workday.
• Weekly: Paid once per week, typically covering 40 hours of work.
• Bi-weekly: Paid every two weeks (26 pay periods per year).
• Semi-monthly: Paid twice per month (24 pay periods per year).
• Monthly: Paid once per month (12 pay periods per year).
• Annually: Total salary for the entire year.

Conversion Formulas

The calculator uses these basic formulas for conversion:

• Hourly to Annual: Hourly Rate × Hours per Week × Weeks Worked per Year
• Daily to Annual: Daily Rate × Work Days per Week × Weeks Worked per Year
• Weekly to Annual: Weekly Rate × Weeks Worked per Year
• Monthly to Annual: Monthly Rate × 12
• Annual to Hourly: Annual Salary ÷ (Hours per Week × Weeks Worked per Year)

Understanding Income Tax and Deductions

Federal Income Tax

The federal income tax is a progressive tax system where the tax rate increases as your income increases. The rate you enter should be your effective tax rate (total federal tax divided by your gross income), not your marginal tax rate. For more precise calculations, consider using our dedicated Income Tax Calculator.

State Income Tax

State income taxes vary widely. Some states have no income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming), while others have rates that can exceed 10% for high earners. Like federal taxes, many states use a progressive system.

FICA Taxes

FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. For most employees, this is a flat 7.65% of wages (6.2% for Social Security and 1.45% for Medicare). Note that the Social Security portion only applies to wages up to the annual wage base limit ($160,200 in 2023).

Retirement Contributions

Many employees contribute to employer-sponsored retirement plans like 401(k)s or 403(b)s. These contributions are typically taken out pre-tax, reducing your taxable income. The maximum contribution limit for 2023 is $22,500 for those under 50.

Health Insurance

Health insurance premiums paid through employer plans are typically deducted from your paycheck. These are often paid with pre-tax dollars, though this calculator treats them as post-tax for simplicity.

Tips for Salary Negotiations

Know Your Worth

Use this calculator to understand the full value of your compensation package, including benefits and the impact of taxes. This gives you a clearer picture of what you're actually earning.

Consider the Full Package

When evaluating job offers, look beyond the base salary to consider benefits like health insurance, retirement contributions, paid time off, and other perks that affect your total compensation.

Understand Different Pay Structures

If you're comparing a job that pays hourly to one that pays an annual salary, use this calculator to ensure you're making an apples-to-apples comparison.

Account for Work Hours

A higher salary might seem attractive, but if it requires significantly more hours, your effective hourly rate might actually be lower. This calculator helps you see your true hourly value.