Paycheck Calculator

What is Paycheck Calculator?

A paycheck calculator converts between hourly wages and annual salary, and estimates your take-home pay after taxes. Whether you are evaluating a job offer quoted as a salary, trying to understand what your hourly rate translates to annually, or simply want to know how much of your gross pay you actually take home, this tool provides instant answers. Understanding the difference between gross pay and net pay is critical for budgeting. Your gross pay is the total amount you earn before any deductions. Your net pay (take-home pay) is what you actually receive after federal income tax, Social Security, Medicare, and state income tax are withheld. The gap between gross and net can be 20-35% or more depending on your income level and filing status.

How It Works

Select your calculation mode: Hourly to Salary or Salary to Hourly. Enter your rate, hours per week, and weeks per year. The calculator computes your gross annual, monthly, biweekly, and weekly pay. Then, based on your filing status and state, it applies 2025 US federal tax brackets and standard deductions, Social Security (6.2%), and Medicare (1.45%) to estimate your net take-home pay. The results show a detailed breakdown of each deduction and your effective tax rate.

Formula

Hourly → Salary: Annual = Hourly Rate × Hours/Week × Weeks/Year
Salary → Hourly: Hourly = Annual Salary ÷ 52 ÷ Hours/Week
Federal Tax = Progressive brackets applied to (Gross - Standard Deduction)
Social Security = 6.2% × min(Gross, $176,100)
Medicare = 1.45% × Gross
Net Pay = Gross - Federal Tax - SS - Medicare - State Tax

Formula Explained

The conversion between hourly and salary is straightforward multiplication or division. The tax calculation uses progressive brackets — you do not pay the highest rate on all your income, only on the portion that falls within each bracket. The standard deduction reduces your taxable income before brackets are applied. Social Security has a wage cap ($176,100 in 2025), meaning earnings above that threshold are not subject to the 6.2% tax. Medicare has no cap but adds a 0.9% surcharge on earnings above $200,000.

Example

Hourly rate: $30/hour, 40 hours/week, 52 weeks Gross annual: $30 × 40 × 52 = $62,400 Filing status: Single, Standard deduction: $15,000 Taxable income: $62,400 - $15,000 = $47,400 Federal tax: $5,451 (10% on first $11,925 + 12% on remainder) Social Security: $62,400 × 6.2% = $3,869 Medicare: $62,400 × 1.45% = $905 Estimated net annual: ~$52,175 (~$4,348/month)

Tips & Best Practices

✓When comparing job offers, always compare total compensation including benefits, not just salary or hourly rate.
✓If you work overtime regularly, factor in the 1.5x rate for hours over 40 per week — this significantly increases annual earnings.
✓Consider contributing to a 401(k) to reduce taxable income and effectively lower your tax bracket.
✓If you freelance or have side income, set aside 25-30% for self-employment taxes in addition to income tax.
✓Check if your state has a flat tax rate, progressive brackets, or no state income tax — this makes a big difference in take-home pay.

Common Use Cases

•Comparing a salary job offer against your current hourly wage
•Budgeting monthly expenses based on actual take-home pay
•Negotiating salary by understanding the hourly equivalent
•Planning for freelance or contract work income after self-employment tax
•Estimating the value of overtime hours at 1.5x rate

Frequently Asked Questions

Multiply your hourly rate by the number of hours you work per week, then multiply by 52 weeks. For example, $25/hour × 40 hours × 52 weeks = $52,000 annual salary. Our calculator also accounts for overtime hours at 1.5x rate.

Divide your annual salary by 52 weeks, then divide by your hours per week. For example, $60,000 ÷ 52 ÷ 40 = $28.85 per hour.

US paycheck deductions typically include: Federal income tax (based on tax brackets and filing status), Social Security tax (6.2% on the first $176,100 in 2025), Medicare tax (1.45% on all earnings), and state income tax (varies by state, some states have none).

For the 2025 tax year, the standard deduction is $15,000 for single filers, $30,000 for married filing jointly, and $22,500 for head of household. This amount is subtracted from your gross income before calculating federal income tax.

Nine US states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire and Tennessee only tax investment income, not wages.