Salary Calculator
Pay Period Guide
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Understanding Salary vs Hourly Pay
Salary vs Hourly: What's the Difference?
Salaried Employees
- • Fixed annual pay regardless of hours worked
- • Often exempt from overtime pay
- • Typically receive benefits (health, PTO, etc.)
- • Predictable paychecks
Hourly Employees
- • Paid based on hours actually worked
- • Eligible for overtime pay (typically 1.5x)
- • Pay varies based on hours
- • May or may not receive benefits
Converting Hourly to Salary
Annual Salary = Hourly Rate × Hours/Week × 52
The standard assumption is 40 hours per week and 52 weeks per year. This calculator allows you to adjust these values if your schedule differs.
| Hourly Rate | Weekly (40 hrs) | Monthly | Annual |
|---|---|---|---|
| $15/hr | $600 | $2,600 | $31,200 |
| $25/hr | $1,000 | $4,333 | $52,000 |
| $35/hr | $1,400 | $6,067 | $72,800 |
| $50/hr | $2,000 | $8,667 | $104,000 |
| $75/hr | $3,000 | $13,000 | $156,000 |
Bi-Weekly vs Semi-Monthly
These are often confused but have an important difference:
Bi-Weekly
Paid every two weeks on a specific day (e.g., every other Friday). This results in 26 paychecks per year. Two months will have three paychecks instead of two.
Semi-Monthly
Paid twice per month on specific dates (e.g., 1st and 15th). This results in exactly 24 paychecks per year, regardless of which day they fall on.
Why This Matters
A $60,000 salary breaks down to:
- Bi-weekly: $60,000 ÷ 26 = $2,307.69/paycheck
- Semi-monthly: $60,000 ÷ 24 = $2,500.00/paycheck
Beyond Base Salary
When comparing job offers, consider total compensation, not just base salary:
- Health Insurance: Employer contributions can be worth $5,000-$20,000+/year
- 401(k) Match: A 6% match on a $60k salary = $3,600/year free money
- Stock Options/RSUs: Can significantly increase total compensation
- Paid Time Off: More PTO = higher effective hourly rate
- Bonuses: Annual bonuses can add 5-20%+ to compensation
Remember
This calculator shows gross (pre-tax) amounts. Your actual take-home pay will be lower after federal/state taxes, Social Security, Medicare, and any deductions for benefits, retirement contributions, etc.
Frequently Asked Questions
How do I convert hourly wage to annual salary?
Multiply your hourly rate by hours worked per week, then by 52 weeks. Example: $25/hour x 40 hours x 52 weeks = $52,000 annual salary. For part-time or variable hours, adjust the weekly hours accordingly. This assumes no unpaid time off.
What is the difference between bi-weekly and semi-monthly pay?
Bi-weekly means every two weeks (26 paychecks/year), while semi-monthly means twice per month on set dates like the 1st and 15th (24 paychecks/year). A $60,000 salary equals $2,307.69 bi-weekly or $2,500 semi-monthly. Two months per year, bi-weekly employees get three paychecks.
How do I calculate my true hourly rate as a salaried employee?
Divide your annual salary by actual hours worked. If you earn $60,000 and work 45 hours/week for 50 weeks, your true hourly rate is $60,000 / (45 x 50) = $26.67/hour. Salaried employees often work more than 40 hours, which reduces effective hourly rate.
Should I compare job offers by salary alone?
No. Consider total compensation: health insurance (worth $5,000-$20,000), 401k match (often 3-6% of salary), PTO, bonuses, stock options, and other benefits. A $70,000 salary with great benefits may be worth more than $80,000 with minimal benefits. Calculate total compensation for fair comparison.