Salary Calculator

When comparing job offers, you need a common language. One offer is $85,000 per year. Another is $40 per hour. A third is $3,000 bi-weekly. Which is best? Our Salary Calculator instantly converts between 6 different pay frequencies (Annual, Monthly, Semi-Monthly, Bi-Weekly, Weekly, Daily, Hourly) using standard work year assumptions that you can customize. We also integrate with our tax calculator to show the critical metric: Net Take-Home Pay (after federal, state, and FICA taxes).

Salary Conversion Formulas (How We Calculate)

• Annual to Hourly: Annual Salary / (Hours per week × Weeks per year). Standard: 2,080 hours (40 hours × 52 weeks).
• Hourly to Annual: Hourly Rate × Hours per week × Weeks per year.
• Annual to Bi-Weekly: Annual Salary / 26 (since there are 26 bi-weekly periods in a year).
• Annual to Monthly: Annual Salary / 12.

Important note for salaried employees: Your "hourly rate" is used to calculate overtime (if you are non-exempt) and is helpful for comparing contract work vs. full-time.

Customizing Work Year Assumptions

Not everyone works a standard 40-hour week or 52 weeks per year. Our calculator lets you adjust:

• Hours per week: Part-time employees might work 20-30 hours. Freelancers might work 35.
• Weeks per year: Subtract vacation time (2 weeks = 50 weeks), holidays (1 week = 49 weeks), sick days (1 week = 48 weeks). A typical full-time US employee works 48-50 weeks per year considering PTO.

Cost of an Employee vs. Your Take-Home Pay

If you are a business owner hiring an employee, the "burdened cost" is much higher than the salary. Our calculator includes a "Employer Cost" toggle. In addition to the salary, employers pay:

• 7.65% FICA (matching employee's Social Security & Medicare)
• Workers' compensation insurance (1-5% of salary)
• Unemployment taxes (FUTA/SUTA)
• Health insurance contributions (often $5,000-10,000/year)
• 401(k) match

A $60,000 employee might cost the business $75,000-80,000. This is vital for budget planning.

Comparing Contract (1099) vs. Employee (W2)

As a contractor (self-employed), you receive no benefits, no paid time off, and you pay both halves of FICA (15.3% self-employment tax). However, contract rates are often higher to compensate. Use our comparison mode: Input a W2 salary of $80,000. The calculator tells you the equivalent 1099 contract rate needed to match net take-home pay. Typically, you need 30-50% more as a contractor to cover taxes, benefits, and overhead. For a $80,000 employee, you might need $110,000 in contract income to break even.

FAQ: Salary Calculator

Salary Calculator is optimized for fast browser-based use, so you can test multiple scenarios in seconds.