Salary Calculator

Salary calculator at a glance#

How do you convert a salary to an hourly rate?#

Divide the yearly salary by 2,080, the hours in 52 weeks of 40 hours. A $60,000 salary is $60,000 ÷ 2,080 = $28.85 an hour. If you work a different number of hours a week, multiply your weekly hours by 52 and divide the salary by that number instead.

What is $60,000 a year paid biweekly?#

It's $2,307.69 per paycheck before taxes, because a biweekly schedule has 26 paydays a year and $60,000 ÷ 26 = $2,307.69. Paid twice a month (24 paydays) it's $2,500.00, and monthly it's $5,000.00.

How do you calculate yearly gross income from an hourly wage?#

Multiply the hourly rate by the hours you work in a week, then by 52. At $25 an hour and 40 hours a week, that's $25 × 40 × 52 = $52,000 a year before taxes. Enter the rate in the calculator above, choose per hour, and it fills in every other period.

How the salary calculator converts pay#

Enter one amount and choose what it's per: hour, day, week, bi-week, semi-month, month, quarter or year. Then enter your work hours and work days per week and your holidays and vacation days per year. The calculator lists the same pay as hourly, daily, weekly, biweekly, semi-monthly, monthly, quarterly and annual amounts.

It builds everything on a 52-week year:

• Weekly = annual ÷ 52
• Hourly = weekly ÷ hours per week, so annual ÷ 2,080 at 40 hours
• Daily = weekly ÷ work days per week
• Biweekly = weekly × 2, or annual ÷ 26
• Monthly = annual ÷ 12, and semi-monthly = monthly ÷ 2
• Quarterly = monthly × 3

For a $60,000 salary at 40 hours and 5 days a week, that's $5,000.00 a month, $2,500.00 semi-monthly, $2,307.69 biweekly, $1,153.85 a week, $230.77 a day and $28.85 an hour. The calculator rounds amounts of $1,000 or more to whole dollars, so it shows the biweekly figure as $2,308.

All of these are gross pay, the amount before taxes and deductions. This gives an estimate, not financial advice.

Why 2,080 hours#

52 weeks × 40 hours = 2,080, the full-time year this calculator uses at its default of 40 hours a week. It's an assumption, not a law, and it treats the year as exactly 52 weeks.

A calendar year has 365 or 366 days, which is a day or two more than 52 weeks. For that reason the U.S. Office of Personnel Management computes federal employees' hourly rates by dividing annual pay by 2,087 hours, the average number of work hours in a year over a 28-year calendar cycle. With 2,087, $60,000 works out to $28.75 an hour instead of $28.85. The same extra days are why a biweekly schedule occasionally fits 27 paydays into one calendar year instead of 26.

Biweekly, semi-monthly, weekly or monthly#

The schedule doesn't change your yearly pay, only how it's sliced. It matters for budgeting: a biweekly paycheck is smaller than a semi-monthly one, but there are two extra paydays a year.

Among private employers, biweekly is the most common pay schedule. For February 2023, the Bureau of Labor Statistics found 43.0% of private establishments paid biweekly, 27.0% weekly, 19.8% semimonthly and 10.3% monthly.

If you're paid biweekly and budget by the month, don't multiply a paycheck by 2. Two biweekly checks of $2,307.69 are $4,615.38, while the monthly equivalent is $2,307.69 × 26 ÷ 12 = $5,000.00. Most months you get two paychecks, and two months a year you get three.

The two result columns: unadjusted and adjusted#

The calculator shows two versions of every figure. The difference is your holidays and vacation days, 23 a year at the default settings (10 holidays plus 13 vacation days, out of 260 weekdays).

• Unadjusted pays you for all 260 weekdays of the year.
• Holidays and vacation days adjusted treats those 23 days as unpaid.

For an hourly worker the adjusted column shows what you'd earn if those days off are unpaid. At $25 an hour, the unadjusted year is $52,000 and the adjusted year is $47,400.

For a salary it works the other way round. The calculator treats your salary as pay for the days you actually work, so the adjusted column shows the plain conversion ($60,000 ÷ 2,080 = $28.85 an hour). The unadjusted column shows what you earn per hour actually worked once 23 paid days off are taken out: $31.65. That's the hourly rate an hourly job without paid time off would need to pay to match the salary. Set holidays and vacation days to 0 and both columns match.

Gross pay vs take-home pay#

The calculator shows gross pay only. Take-home pay is lower. Employers withhold Social Security tax at 6.2% and Medicare tax at 1.45% of wages, according to the IRS, plus federal income tax and any state or local income tax. Social Security tax stops once 2026 wages pass $184,500. Other deductions, such as 401(k) contributions and health insurance premiums, come out too.

On a $2,307.69 biweekly paycheck, Social Security and Medicare alone take $176.54 ($143.08 + $33.46), leaving $2,131.15 before income tax withholding and other deductions. Your actual withholding depends on your tax situation, so your pay stub is the final word. If part of each check goes to a retirement plan, the 401(k) calculator shows what those contributions can grow to.

Salary conversion table#

Gross pay for common salaries at 40 hours a week and 52 weeks a year.

Hourly to yearly salary#

Gross yearly, monthly and biweekly pay for common hourly rates at 40 hours a week. To add up hours that change from day to day before converting, the work hours calculator totals a week from start times, end times and breaks.

Sources#

• U.S. Bureau of Labor Statistics, Length of pay periods in the Current Employment Statistics survey (February 2023 data)
• U.S. Office of Personnel Management, Computing Hourly Rates of Pay Using the 2,087-Hour Divisor
• IRS, Topic no. 751, Social Security and Medicare withholding rates

Frequently asked questions#

How do you figure out gross monthly income?#

Divide your yearly gross pay by 12. For hourly pay, multiply the rate by your weekly hours, then by 52, then divide by 12. At $25 an hour and 40 hours a week that's $25 × 40 × 52 ÷ 12 = $4,333.33 a month.

How much is $28.85 an hour per year?#

About $60,000 at 40 hours a week: $28.85 × 2,080 = $60,008. The extra $8 comes from rounding $28.846 to two decimals.

Is biweekly pay the same as twice a month?#

No. Biweekly means every two weeks, 26 paychecks a year. Twice a month, or semi-monthly, means 24 paychecks, often on fixed dates. On $60,000 that's $2,307.69 against $2,500.00 per paycheck.

Does the salary calculator show take-home pay?#

No. It converts gross pay between periods. Taxes and deductions such as Social Security, Medicare, income tax and retirement contributions reduce what reaches your bank account.

How many work hours are in a year?#

2,080 at 40 hours a week for 52 weeks, the figure this calculator uses by default. Federal pay calculations use 2,087 to account for the extra day or two in a calendar year.

How do I calculate a raise?#

Multiply your pay by 1 plus the raise as a decimal. A 3% raise on $60,000 is $60,000 × 1.03 = $61,800, or $29.71 an hour. The percentage calculator handles any percent increase.