Salary Calculator

The Complete Guide to Understanding Your Salary

Whether you're negotiating a job offer, planning your budget, or just curious about where your money goes, understanding the difference between gross pay and net pay is essential. This Salary Calculator gives you a complete picture of your earnings. Switch between annual salary and hourly wage, factor in overtime, and see exactly how federal, state, and FICA taxes—along with pre‑tax deductions like 401(k) and health insurance—affect your take‑home pay.

Unlike basic calculators that only convert hourly to yearly, this tool provides a full paycheck breakdown and an annual summary with a visual chart. It uses the 2025 federal tax brackets, standard deduction, and current FICA rates to deliver accurate, personalized estimates. All calculations happen instantly and privately—no sign‑up required.

How Your Paycheck Is Calculated

Your gross pay is reduced by a series of mandatory and voluntary deductions:

1. Pre‑Tax Deductions: Contributions to a traditional 401(k), health insurance premiums, HSA/FSA contributions, and other qualified benefits are subtracted from gross pay before taxes are calculated. This lowers your taxable income.
2. Federal Income Tax: Based on your taxable income (gross minus pre‑tax deductions minus standard deduction) and filing status, using the 2025 progressive tax brackets (10% to 37%).
3. FICA Taxes: Social Security (6.2% on the first $168,600 of wages in 2025) and Medicare (1.45% on all wages, plus an extra 0.9% on earnings over $200,000 for single filers). These fund your future benefits.
4. State Income Tax: Varies by state; this calculator uses a flat percentage you provide for a close estimate.

Hourly vs. Salary: What's the Difference?

• Hourly employees are paid for each hour worked. They are typically eligible for overtime pay. Their income can vary week to week based on hours scheduled.
• Salaried employees receive a fixed annual amount, regardless of hours worked. Many salaried positions are exempt from overtime pay, though some non‑exempt salaried roles do qualify.

Use the toggle at the top of the calculator to switch between modes and see equivalent annual or hourly figures.

Maximizing Your Take‑Home Pay

• Adjust your W‑4: If you consistently receive large refunds or owe taxes, submit a new Form W‑4 to your employer to adjust withholding.
• Contribute to pre‑tax accounts: 401(k), HSA, and FSA contributions reduce taxable income, lowering your tax bill while building savings.
• Understand your benefits: Employer‑subsidized health insurance, commuter benefits, and dependent care FSAs can save you thousands annually.