Convert your hourly wage into weekly, monthly, and annual salary equivalents. Our Hourly Wage Calculator helps you estimate your true take-home pay by accounting for overtime, taxes, and deductions.
How to Use This Hourly Wage Calculator
Calculating your paycheck shouldn't be a guessing game. Whether you're starting a new job, negotiating a raise, or planning your budget, knowing your exact numbers is crucial. Here's how to get the most out of this tool:
- Enter Your Hourly Rate: Input your base pay rate per hour. If you have multiple rates, start with your primary one.
- Set Your Hours: Enter the number of regular hours you work per week. The standard full-time workweek is 40 hours.
- Add Overtime: If you work extra hours, input them in the "Overtime Hours" field. Select your overtime multiplier (usually 1.5x for time-and-a-half).
- Select Filing Status: Choose your tax filing status (Single, Married Filing Jointly, etc.) to estimate federal tax withholding.
- Review Your Results: The calculator instantly breaks down your gross pay, estimated taxes, and net pay across daily, weekly, monthly, and annual periods.
Understanding Your Paycheck: Gross vs. Net Pay
One of the most common sources of confusion for hourly employees is the difference between what they earn and what actually hits their bank account.
Gross Pay
Gross pay is the total amount of money you earn before any deductions. It's calculated simply as:
Gross Pay = (Hourly Rate × Regular Hours) + (Overtime Rate × Overtime Hours)
For example, if you earn $25/hour and work 40 hours, your gross weekly pay is $1,000. This is the "headline" number usually quoted in job offers.
Net Pay (Take-Home Pay)
Net pay is what you actually take home. It's your gross pay minus all mandatory and voluntary deductions. Our calculator estimates the mandatory federal deductions:
- Federal Income Tax: Based on your tax bracket and filing status.
- Social Security Tax: A flat 6.2% rate on earnings up to the wage base limit.
- Medicare Tax: A flat 1.45% rate on all earnings.
Note: This calculator provides an estimate based on federal tax brackets. State and local taxes, health insurance premiums, and 401(k) contributions will further reduce your net pay.
The Impact of Overtime on Your Earnings
Overtime can significantly boost your annual income. Under the Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay for hours worked over 40 in a workweek.
The standard overtime rate is 1.5 times your regular hourly rate (often called "time and a half").
Example Scenario:
Let's say you earn $20/hour.
- Regular Pay: $20/hour
- Overtime Pay: $20 × 1.5 = $30/hour
If you work 45 hours in a week:
- 40 hours × $20 = $800 (Regular Pay)
- 5 hours × $30 = $150 (Overtime Pay)
- Total Weekly Gross: $950
Just 5 hours of overtime increased your weekly gross pay by nearly 19%!
Converting Hourly Wage to Salary
Comparing an hourly job to a salaried position? You need to "annualize" your hourly rate. The standard calculation assumes a full-time schedule of 40 hours per week for 52 weeks a year.
The Magic Number: 2,080
There are typically 2,080 work hours in a year (40 hours × 52 weeks). To convert hourly to salary quickly:
Annual Salary = Hourly Rate × 2,080
Quick Reference Table:
| Hourly Rate | Weekly Pay | Monthly Pay | Annual Salary |
|---|---|---|---|
| $15.00 | $600 | $2,600 | $31,200 |
| $20.00 | $800 | $3,467 | $41,600 |
| $25.00 | $1,000 | $4,333 | $52,000 |
| $30.00 | $1,200 | $5,200 | $62,400 |
| $40.00 | $1,600 | $6,933 | $83,200 |
| $50.00 | $2,000 | $8,667 | $104,000 |
Common Pay Frequencies Explained
Your "take-home" amount per paycheck depends heavily on how often you are paid.
- Weekly: 52 paychecks per year. Smaller checks, but you get paid every week.
- Bi-Weekly: 26 paychecks per year. You get paid every two weeks. This is the most common frequency. Note that in two months of the year, you will receive three paychecks.
- Semi-Monthly: 24 paychecks per year. You get paid twice a month (e.g., on the 1st and 15th). Paychecks are slightly larger than bi-weekly ones, but consistent every month.
- Monthly: 12 paychecks per year. One large check per month. Requires careful budgeting.
Frequently Asked Questions
The Pros and Cons of Hourly vs. Salaried Pay
Choosing between an hourly wage and an annual salary is a significant decision that impacts your work-life balance and earning potential. Both structures have distinct advantages and disadvantages depending on your industry and lifestyle.
Advantages of Hourly Pay
- Overtime Eligibility: The biggest perk of hourly work is overtime pay. If you work more than 40 hours, you get paid for it, usually at a higher rate. Salaried employees often work long hours without extra compensation.
- Holiday Pay: Many hourly workers receive "time and a half" or even "double time" for working on holidays, providing a significant boost to their paycheck.
- Clear Boundaries: Hourly work often comes with stricter start and end times. When you clock out, you are done. Salaried roles can sometimes bleed into personal time with expectations of checking emails or finishing projects late at night.
Disadvantages of Hourly Pay
- Income Fluctuation: Your paycheck is directly tied to the hours you work. If business is slow and your hours are cut, your income drops. This unpredictability can make budgeting difficult.
- Lack of Benefits: In some industries, hourly positions are viewed as part-time or temporary and may not come with the same robust benefits package (health insurance, 401k match, paid parental leave) as salaried roles.
- No Work, No Pay: Unlike salaried employees who still get paid if they need to leave early for a doctor's appointment, hourly workers usually lose wages for any time missed unless they use accrued PTO.
Strategies for Budgeting on an Hourly Wage
When your income can vary from week to week, traditional budgeting methods might not work. Here are some strategies tailored for hourly employees to maintain financial stability.
1. Base Your Budget on Your Minimum Hours
Calculate your monthly expenses based on the minimum number of hours you are guaranteed to work (e.g., 30 or 35 hours). Treat any income from hours worked above this minimum as "extra" money for savings or debt repayment. This ensures you can always cover your bills even during a slow week.
2. Build a Larger Emergency Fund
Because hourly workers are more vulnerable to schedule cuts, having a robust emergency fund is critical. Aim for 3 to 6 months of living expenses. This buffer allows you to weather periods of reduced hours without stress.
3. Use the "Pay Yourself First" Method
Set up automatic transfers to your savings account for the day you get paid. If you wait until the end of the month to save what is left, you will often find there is nothing left. Even small amounts, like $25 per paycheck, add up over time.
4. Track Your Hours Diligently
Don't rely solely on your employer's time clock. Keep your own record of hours worked, including overtime. Mistakes happen, and identifying a payroll error early is much easier than trying to fix it months later. There are many free apps available to help you log your shifts.
Tips for Maximizing Your Hourly Income
If you're an hourly employee, there are several strategies to increase your take-home pay:
- Seek Overtime Opportunities: Since overtime is paid at a premium (1.5x), working just a few extra hours can significantly boost your weekly earnings.
- Review Your W-4: Ensure your tax withholding is correct using the IRS Tax Withholding Estimator. If you consistently get a large refund, you might be withholding too much from each paycheck.
- Negotiate Your Rate: Research the market rate for your position. Even a small increase of $1 or $2 per hour adds up to thousands of dollars over a year.
- Understand Benefits: Sometimes a lower hourly rate with better benefits (like fully paid health insurance) is worth more than a higher rate with high out-of-pocket costs.