Calculation Methodology
The formulas behind our pay calculators, including the assumptions that matter most.
Hourly to annual pay
The common shortcut of multiplying an hourly rate by 2,080 assumes 40 paid hours each week for all 52 weeks. Our calculator exposes both schedule inputs so part-time work and unpaid weeks can be represented directly.
Annual salary to hourly equivalent
This produces a comparison rate. It does not change a salaried employee into an hourly employee or determine legal overtime status.
Biweekly pay
Biweekly means every two weeks. Semi-monthly payroll generally uses 24 pay periods instead, so the paycheck amounts differ even when annual salary is identical.
Raise calculations
We also show the dollar increase so a user can compare the percentage with the actual change in pay.
Overtime estimates
The overtime calculator multiplies the entered hourly rate by the multiplier chosen by the user. The default 1.5× setting is a common U.S. overtime example, but legal eligibility depends on the worker and applicable law.
Gross pay, rounding and taxes
Unless a tool explicitly states otherwise, results are gross pay before deductions. Calculations use the entered values and display currency rounded to two decimal places where useful. We do not estimate taxes in the current version because accurate take-home calculations require location and tax details that these simple tools do not collect.