Salary Calculator: Hourly, Yearly, Time and Half

Salary Calculator tools help simplify the wage calculation for both workers and employers.

What Are Salary Calculators

Salary calculators are tools that help individuals and employers calculate:

  • Hourly pay
  • Weekly pay
  • Monthly pay
  • Annual pay

These calculations are based on factors such as hours worked, overtime, and pay frequency. It’s important to understand the difference between wage and salary since wage refers to employee remuneration based on the number of hours worked multiplied by an hourly rate of pay, while a salary is when you pay employees the same amount each pay period regardless of how much they work.

Factors considered when determining salary and wage include hours worked, overtime, pay frequency, health insurance, retirement plans, bonuses, company discounts, and more.

How They Work

Salary calculators use simple math formulas.

For example, a $20 hourly rate multiplied by hours worked in a day to determine your daily wage.

The free tools provided by OysterLink help you calculate other pay rates including Hourly to Salary Calculator, Salary to Hourly Calculator, and Time and Half Calculator.

Different Pay Frequencies

Pay frequencies can vary by country, state, industry, and company, with common options including:

  • Monthly
  • Semi-monthly
  • Bi-weekly
  • Weekly
  • Daily

In the U.S., there is no federal law that requires payment at any specific frequency. However, it does stipulate that employees must be paid in regular and foreseeable ways. Pay periods generally come in 5 frequencies: monthly, semi-monthly, bi-weekly, weekly and daily. The most common frequencies are monthly, semi-monthly and bi-weekly, which are often chosen as the standard pay period.

Factors that Influence Salary (and Wage) in the U.S.

Factors affecting salary and wage in the U.S. include:

  • Minimum wage laws
  • Employee benefits
  • Job location
  • Industry demand for both hourly and salaried employees

The federal minimum wage for covered nonexempt employees is $7.25 per hour. Many states also have minimum wage laws.

Type of Salary Calculators

  • Hourly to Salary Calculator: Hourly to salary calculators convert hourly wages to annual, monthly, and weekly pay rates, taking into account hours worked per week and weeks worked per year.
  • Salary to Hourly Calculator: Salary to hourly calculators convert annual salaries to hourly rates, considering factors such as hours worked per week and weeks worked per year.

Convert Hourly Rate to Salary

Frequently Asked Questions

To calculate your salary, multiply your hourly wage by the number of hours worked per week and then by the number of weeks in the year. For example, if you earn $25 an hour for 40 hours a week, it totals $1,000 a week. Multiply it by 52 weeks for a total of $52,000.

To calculate your monthly income, simply multiply your hourly wage by the number of hours worked per week (usually 40), then multiply this result by 52 (the number of weeks in a year) and divide by 12 (the number of months in a year). This will give you the total amount of money (salary) you’re paid per month.

The percentage of a paycheck that goes to federal taxes can range from 10% up to 37%, depending on an individual’s income and filing status. States without income taxes may offer some relief, but everyone should consider completing a W-4 form to ensure their federal withholding is correct.

To convert an annual salary to an hourly rate, divide the salary by the number of hours worked in a year. For example, if an employee earns $50,000 per year and works 40 hours per week, their hourly rate is $50,000 divided by 2,080 (40 x 52) which equals $24.04 per hour.