Salary Calculator

To convert an hourly wage to an annual salary, multiply your hourly rate by the number of hours you work per week, then multiply that by the number of weeks you work per year. With standard full-time assumptions: Annual Salary = Hourly Rate x 40 hours/week x 52 weeks/year. For example, a $25/hour wage equals $52,000 per year. If you work fewer hours or take unpaid time off, adjust the hours/week and weeks/year values in the calculator above.

Gross pay is your total earnings before any deductions. It is the salary your employer agrees to pay you. Take-home pay (also called net pay) is what you actually receive in your bank account after federal income tax, state income tax, Social Security, Medicare, and other deductions are subtracted. Your take-home pay is typically 25-35% less than your gross pay, depending on your tax bracket, filing status, and state of residence.

Federal income taxes in the United States use a progressive bracket system. Your income is first reduced by the standard deduction ($14,600 for single filers, $29,200 for married filing jointly in 2024). The remaining taxable income is then taxed at increasing rates across multiple brackets, starting at 10% on the first portion and going up to 37% for income over $609,350 (single). Only the income within each bracket is taxed at that bracket's rate, not your entire income.

A standard full-time work year consists of 2,080 hours (40 hours per week x 52 weeks). This equals 260 work days per year assuming 5-day work weeks. However, if you account for typical paid holidays (10 days) and vacation (10 days), actual working hours may be closer to 1,920 hours. You can customize the hours per week and weeks per year in the advanced settings of the calculator above to match your specific situation.

Dewx is an all-in-one business operating system that goes beyond simple calculators. It includes payroll management, expense tracking, invoicing, and financial analytics in one platform. Track employee compensation across your team, automate salary calculations, and get AI-powered insights on workforce costs. Dewx combines CRM, finance, HR, and operations so you can manage your entire business from a single command center. Join the beta to streamline your business operations.