Gross Pay Calculator
Convert your hourly rate into total gross earnings
Regular Earnings:
$0.00
Overtime Earnings:
$0.00
Additional Pay:
$0.00
Total Gross Pay:
$0.00
Understanding Gross Pay vs. Net Pay
Gross pay is the total amount of money an employee earns before any taxes, social security contributions, or voluntary deductions (like health insurance or 401k contributions) are taken out. In contrast, net pay, often referred to as "take-home pay," is what remains after all deductions have been subtracted.
How to Calculate Gross Pay from Hourly Rate
To calculate gross pay manually for an hourly employee, you need to account for three primary components: base wages, overtime pay, and additional earnings like bonuses. The standard formula is:
Gross Pay = (Regular Hours × Hourly Rate) + (Overtime Hours × Hourly Rate × Overtime Multiplier) + Bonuses
The Step-by-Step Calculation Process
- Determine Regular Pay: Multiply your base hourly rate by the number of regular hours worked (usually up to 40 hours per week).
- Calculate Overtime Rate: In many regions, overtime is 1.5 times the regular rate. Multiply your hourly rate by the multiplier (e.g., $20 x 1.5 = $30).
- Calculate Overtime Pay: Multiply the overtime rate by the number of overtime hours worked.
- Add Bonuses: Include any performance bonuses, commissions, or tips earned during the period.
- Sum Everything: Add the regular pay, overtime pay, and bonuses together.
Real-World Example
Let's say Jane earns $25.00 per hour. Last week, she worked 45 hours and received a $100 bonus. Her overtime multiplier is 1.5.
- Regular Pay: 40 hours × $25.00 = $1,000.00
- Overtime Pay: 5 hours × ($25.00 × 1.5) = $187.50
- Bonus: $100.00
- Total Gross Pay: $1,000.00 + $187.50 + $100.00 = $1,287.50
Common Overtime Multipliers
While "time and a half" (1.5x) is the most common multiplier in the United States under the Fair Labor Standards Act (FLSA), some employers offer "double time" (2.0x) for holidays or specific weekend shifts. Always check your employment contract to ensure you are using the correct multiplier for your calculations.