# Salary Calculator

> Convert between hourly, weekly, monthly, and annual salary with deductions and overtime

**Category:** Finance
**Keywords:** salary, wage, hourly, annual, income, paycheck, tax, deductions, overtime, pay
**URL:** https://complete.tools/salary-calculator

## How it calculates

To perform conversions, the calculator uses these straightforward formulas: 
1. Annual Salary (AS) = Hourly Salary (HS) × Hours per Week (HPW) × Weeks per Year (WPY)  
2. Monthly Salary (MS) = Annual Salary (AS) ÷ 12  
3. Weekly Salary (WS) = Hourly Salary (HS) × Hours per Week (HPW)  
4. Hourly Salary (HS) = Weekly Salary (WS) ÷ Hours per Week (HPW)  
5. For overtime: Overtime Pay (OP) = Overtime Hours (OH) × Overtime Rate (OR)  
Here's what the variables mean: HS is your income per hour; HPW is how many hours you typically work in a week; WPY is the number of weeks you work in a year, usually 52; MS is your monthly income; WS is your weekly income; OH is the overtime hours you've worked, and OR is what you earn for those overtime hours. These formulas connect different salary structures, making it easy for you to convert and calculate your earnings.

## Who should use this

This tool is perfect for payroll administrators who need to calculate employee salaries across different timeframes. Freelancers can use it to set their hourly rates based on their desired annual income. Human resource managers can analyze compensation packages effectively, while business owners can assess labor costs for project budgets.

## Worked examples

Example 1: Let’s say a graphic designer earns $25 an hour and works 40 hours each week. To find their annual salary, you’d use AS = HS × HPW × WPY: AS = 25 × 40 × 52 = $52,000. To get the monthly salary, divide that by 12: MS = 52,000 ÷ 12 = $4,333.33.

Example 2: A part-time employee works 20 hours a week and earns $15 an hour. For their weekly salary, use WS = HS × HPW: WS = 15 × 20 = $300. To find their annual salary, AS = WS × WPY = 300 × 52 = $15,600. Their monthly breakdown would be MS = AS ÷ 12 = 15,600 ÷ 12 = $1,300.

Example 3: Consider an employee who earns $800 a week and works 45 hours in that week, with an overtime rate of 1.5 times their hourly wage. First, find their hourly salary: HS = WS ÷ HPW: HS = 800 ÷ 40 = $20. For overtime pay: OP = OH × OR = 5 × (20 × 1.5) = 5 × 30 = $150. So, their total earnings for the week would be $800 + $150 = $950.

## Limitations

The calculator assumes a standard 40-hour workweek, which may not fit every profession. It doesn’t take into account variations in tax rates or specific deductions that could impact net income. Precision is limited to two decimal places, so it might miss some details in salary calculations. Edge cases like zero hours worked or non-standard arrangements may not yield accurate results. Plus, keep in mind that this tool doesn’t consider benefits or bonuses that could affect overall compensation.

## FAQs

**Q:** How does the tool handle overtime calculations for salaried employees?  


**A:** The tool calculates overtime for hourly employees using their standard hourly wage multiplied by the overtime rate. For salaried employees, it often requires a different approach based on company policy or labor laws.  


**Q:** What assumptions does the calculator make regarding work hours?  


**A:** It assumes a standard 40-hour workweek for full-time employees and doesn’t factor in variations like part-time work, shift differentials, or industry-specific standards.  


**Q:** Can the tool calculate salaries with varying pay rates?  


**A:** Right now, the tool calculates based on a single hourly rate. For multiple pay rates, users need to perform separate calculations for each rate and then add them up manually.  


**Q:** Is the tool applicable for freelance workers with irregular hours?  


**A:** While it can give estimates for freelancers, it might not accurately reflect income for those with fluctuating hours. Freelancers should keep track of their hours and earnings for the most precise calculations.

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*Generated from [complete.tools/salary-calculator](https://complete.tools/salary-calculator)*