Salary Calculation Guide
Understanding how to convert between different salary periods is essential for evaluating job offers, budgeting, and financial planning. This calculator helps you analyze your compensation from multiple perspectives.
Salary Conversion Formulas
Standard conversion methods between different pay periods:
- Annual to Monthly: Divide annual salary by 12 months
- Annual to Weekly: Divide annual salary by 52 weeks
- Annual to Hourly: Divide by 2,080 hours (40 hours × 52 weeks)
- Hourly to Annual: Multiply by hours worked per year
Overtime Calculations
Understanding overtime pay is crucial for hourly workers:
- Regular Time: First 40 hours per week at standard rate
- Overtime Rate: Typically 1.5x (time-and-a-half) for hours over 40
- Double Time: Some employers pay 2x rate for holidays or excessive hours
- Annual Impact: Overtime can significantly increase total compensation
Gross vs. Net Pay
Understanding deductions from your gross salary:
- Federal Taxes: Income tax withholding based on tax brackets
- State Taxes: Varies by state, some states have no income tax
- FICA Taxes: Social Security (6.2%) and Medicare (1.45%)
- Benefits: Health insurance, dental, vision, life insurance premiums
- Retirement: 401(k) contributions reduce taxable income
Evaluating Job Offers
Consider total compensation when comparing opportunities:
- Base Salary: Guaranteed annual compensation
- Bonuses: Performance-based or signing bonuses
- Benefits Value: Health insurance, retirement matching, stock options
- Work-Life Balance: Vacation time, flexible hours, remote work options
- Growth Potential: Career advancement and salary increase opportunities