Pay Calculator by Hourly Rate
Estimate your gross and net earnings instantly
How to Use the Hourly Rate Pay Calculator
Calculating your take-home pay or annual salary based on an hourly wage is essential for budgeting and career planning. Whether you are transitioning from a freelance role to a full-time position or negotiating a raise, understanding these figures provides financial clarity.
The Core Calculation Formula
The standard way to determine your pay follows a specific hierarchy of math:
- Weekly Gross Pay: (Hourly Rate × Regular Hours) + (Overtime Hours × (Hourly Rate × Overtime Multiplier))
- Annual Gross Pay: Weekly Gross Pay × Weeks worked per year (usually 52)
- Monthly Gross Pay: Annual Gross Pay ÷ 12
Understanding Gross vs. Net Pay
Gross Pay is the total amount you earn before any deductions are taken out. This is the figure typically listed in offer letters and employment contracts. Net Pay, often called "take-home pay," is what remains after federal, state, and local taxes, Social Security, and Medicare (FICA) are withheld.
Example Calculation
If you earn $30 per hour and work a standard 40-hour week with 2 hours of overtime at a 1.5x multiplier:
- Regular Weekly Pay: $30 × 40 = $1,200
- Overtime Pay: 2 hours × ($30 × 1.5) = $90
- Total Weekly Gross: $1,290
- Annual Gross: $1,290 × 52 weeks = $67,080
Why the Number of Weeks Matters
While most people use 52 weeks for calculations, some workers may only work 50 weeks to account for two weeks of unpaid vacation. If your employer provides paid time off (PTO), you should continue to use 52 weeks in your annual projection.
Factors That Affect Your Take-Home Pay
Beyond the tax rate entered in this calculator, other deductions may reduce your final check, including:
- Health Insurance Premiums
- 401(k) or Retirement Contributions
- Flexible Spending Accounts (FSA)
- Union Dues or Professional Fees