Understanding Your Paycheck
Knowing your hourly rate or weekly equivalent of your annual salary helps you understand the true value of your time. This tool allows you to convert between any pay frequency and estimate the impact of taxes on your take-home pay.
Gross Pay vs. Net Pay
Gross Pay is the total amount of money you earn before any deductions are taken out. This is the number usually written in your employment contract.
Net Pay is the amount of money you actually take home ("Take-Home Pay"). This is Gross Pay minus mandatory taxes and deductions.
Standard Work Assumptions
This calculator assumes standard full-time work metrics to determine hourly rates:
- Hours per Week: 40 hours (Standard 5-day, 8-hour schedule).
- Weeks per Year: 52.143 (365 days / 7).
- Work Days per Year: ~260 days (Excluding weekends).
Overtime and Bonuses
This calculator focuses on your base salary. If you work overtime (typically 1.5x your hourly rate for hours over 40), that money is usually added to your paycheck but taxed at a higher rate. Always check your specific pay stub for exact overtime calculations.
How to Calculate Hourly Rate
To find your hourly rate from an annual salary, use this formula:
Conversely, to find annual from hourly: