Why salary conversions matter
Job offers are posted in different pay periods. A retail job advertises $18/hour. A tech job offers $95,000/year. A consulting role pays $850/day. Comparing these directly requires converting everything to the same unit — usually annual salary — before making an apples-to-apples comparison.
Standard salary conversion formulas
All conversions go through annual salary as the common denominator:
Hourly to annual: Hourly × hours/week × 52
- $25/hr × 40 hrs × 52 = $52,000/year
Daily to annual: Daily × 5 × 52 (assumes 5-day work week)
- $500/day × 5 × 52 = $130,000/year
Weekly to annual: Weekly × 52
- $2,000/week × 52 = $104,000/year
Bi-weekly to annual: Bi-weekly × 26
- $3,000/bi-weekly × 26 = $78,000/year
Monthly to annual: Monthly × 12
- $6,500/month × 12 = $78,000/year
Understanding pay periods
Most US employees are paid on one of these schedules:
| Pay period | Frequency | Paychecks/year |
|---|---|---|
| Weekly | Every 7 days | 52 |
| Bi-weekly | Every 14 days | 26 |
| Semi-monthly | 1st and 15th | 24 |
| Monthly | Once per month | 12 |
Note: bi-weekly and semi-monthly are NOT the same. Bi-weekly gives 26 paychecks (two months per year have 3 paychecks). Semi-monthly always gives exactly 24.
Federal income tax brackets 2026
The US uses a progressive tax system — you only pay the higher rate on income within that bracket, not on your entire salary.
Single filers (2026 estimated):
| Taxable income | Rate |
|---|---|
| Up to $11,600 | 10% |
| $11,600–$47,150 | 12% |
| $47,150–$100,525 | 22% |
| $100,525–$191,950 | 24% |
| $191,950–$243,700 | 32% |
| $243,700–$609,350 | 35% |
| Over $609,350 | 37% |
A person earning $60,000 does NOT pay 22% on all $60,000. They pay:
- 10% on the first $11,600 = $1,160
- 12% on $11,600–$47,150 = $4,266
- 22% on $47,150–$60,000 = $2,827
- Total federal tax: $8,253 (effective rate: 13.8%)
FICA taxes (Social Security and Medicare)
In addition to income tax, most employees pay FICA:
- Social Security: 6.2% of wages up to $168,600 (2026 wage base)
- Medicare: 1.45% of all wages (no limit)
- Additional Medicare: 0.9% on wages over $200,000 (single filers)
For a $60,000 salary:
- Social Security: $3,720
- Medicare: $870
- Total FICA: $4,590
Gross vs net pay
Gross pay: Your full salary before any deductions
Net pay (take-home): What actually hits your bank account after:
- Federal income tax
- State income tax (varies by state — 9 states have no income tax)
- FICA
- Health insurance premiums
- 401(k) contributions
- Other voluntary deductions
For a single person earning $60,000 in California:
- Gross annual: $60,000
- Federal tax: -$8,253
- CA state tax: -$2,830
- FICA: -$4,590
- Estimated annual take-home:
$44,327 ($3,694/month)
The real value of benefits
A job paying $60,000 with health insurance, 401(k) match, and paid time off may actually be worth significantly more than a $70,000 job with no benefits:
- Health insurance: worth $5,000–$15,000/year
- 401(k) match of 4%: $2,400/year on $60K salary
- 15 days PTO: 15/260 × $60,000 = $3,461 of paid rest
How to calculate your salary free
- Go to Salary Calculator
- Enter your salary amount and current pay period
- See all pay period conversions instantly
- Toggle the tax estimator for take-home pay estimate
- Select your state and filing status for accuracy