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💼 Salary Calculator

Convert annual salary to monthly, weekly, daily, and hourly pay — with overtime rate, part-time breakdown, and budgeting benchmarks.

Enter Your Values

Your total annual salary before tax
Standard full-time: 40 hours
Usually 52, or 50 if excluding holiday

How to Use This Salary Calculator

Enter your annual gross salary — the figure on your employment contract or offer letter, before any tax or deductions. Enter your weekly hours (40 for standard full-time) and weeks per year (52, or fewer if you exclude annual leave). The calculator converts your salary into every useful pay period: monthly, biweekly, weekly, daily, and hourly — plus your overtime rate.

All figures shown are gross (before tax). Your actual take-home pay after income tax, Social Security, and other deductions will be lower — typically 65-80% of gross depending on your country, tax bracket, and deductions.

Understanding Gross vs Net Salary

Gross salary is what your employer pays you in total. Net salary — take-home pay — is what lands in your bank account after deductions. The gap between the two depends on your tax bracket, filing status, pension contributions, health insurance premiums, and other withholdings.

As a rough guide for US federal taxes only (state taxes vary):

  • $40,000 annual salary → approximately $33,000-35,000 net (after federal tax + FICA)
  • $60,000 annual salary → approximately $48,000-51,000 net
  • $80,000 annual salary → approximately $62,000-65,000 net
  • $100,000 annual salary → approximately $75,000-78,000 net

Use our Salary Tax Calculator for a more precise take-home pay estimate based on your specific state and filing status.

Salary Budgeting Benchmarks

Once you know your monthly gross salary, these common guidelines help structure a sustainable budget:

  • Housing (rent/mortgage): No more than 28-30% of gross monthly income
  • Transportation: 10-15% of monthly income (car payment, fuel, insurance, maintenance)
  • Food: 10-15% of monthly income
  • Savings and investments: At least 15-20% of gross income (the 50/30/20 rule suggests 20%)
  • Debt repayment: Total debt payments ideally under 36% of gross monthly income

Converting Between Pay Periods

Different employers quote salaries in different ways. Here is how to convert between common pay periods:

  • Annual to monthly: divide by 12
  • Annual to biweekly: divide by 26
  • Annual to weekly: divide by 52
  • Annual to daily: divide by 260 (standard working days)
  • Annual to hourly: divide by 2,080 (40 hours × 52 weeks)

Frequently Asked Questions

How do I convert annual salary to hourly rate? +
Divide annual salary by total working hours per year. For standard full-time (40 hrs/week, 52 weeks): annual ÷ 2,080. A $60,000 salary = $60,000 ÷ 2,080 = $28.85/hour. For different hours, multiply your actual weekly hours by 52 and divide the annual salary by that number.
What is the difference between gross and net salary? +
Gross salary is your total pay before any deductions. Net salary is what you actually receive after income tax, Social Security, Medicare, pension contributions, and any other withholdings are removed. Net pay is typically 65-80% of gross depending on your tax bracket and location.
How is overtime pay calculated? +
Standard overtime in the US and many other countries is 1.5 times (time-and-a-half) your regular hourly rate for hours beyond 40 per week. Your overtime rate = (annual salary ÷ 2,080) × 1.5. Some jurisdictions pay double-time for hours beyond 12 in a day or for certain holidays.
How many working hours are in a year? +
Standard full-time employment is 2,080 hours per year (40 hours × 52 weeks). Accounting for public holidays (typically 8-12 days in most countries), effective working hours drop to approximately 1,984-2,016 per year. Most salary-to-hourly conversions use 2,080 as the standard denominator.
What percentage of salary should go to rent? +
The traditional guideline is no more than 30% of gross monthly income on housing. More conservative advice suggests 25-28%. In high cost-of-living cities, many people spend 35-45% on housing — which requires careful budgeting in other areas. As a practical check: if housing costs more than one week's gross salary per month, your budget may be stretched.

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