HOW IT WORKS
Annual = Hourly × Hours/Week × Weeks/Year. US full-time standard: 2,080 hours/year (40 hrs × 52 weeks).
UNDERSTANDING US FULL-TIME STANDARDS
2,080 hours/year: The standard calculation for US full-time salary. 40 hours/week × 52 weeks = 2,080 hours. This is used for budgeting, job offers, and contract negotiations.
Paid Time Off (PTO) Reality: Most salaried employees get 10-20 days PTO (vacation + sick days). So you're actually paid for ~50 weeks of work, not 52. Use 50 weeks if calculating take-home based on worked hours only.
Part-Time Standards: Part-time is typically < 30 hours/week. Common schedules: 20 hrs/week (half-time), 25-29 hrs/week (retailers avoiding ACA benefits threshold), 32 hrs/week (compressed schedule).
Overtime Rules: Non-exempt hourly employees earn 1.5× hourly rate for hours over 40/week (FLSA law). Salaried employees may be exempt from overtime if earning $35,568+ annually and performing executive/professional duties.
COMMON US HOURLY WAGES (2025-2026)
Federal Minimum Wage: $7.25/hr (since 2009) = $15,080/year. However, 30+ states have higher minimum wages: $15/hr in CA/NY/WA, $10-14/hr in many states.
Living Wage: Varies by location. MIT Living Wage Calculator suggests $15-20/hr for single adults in most US metros, $25-35/hr for families with children.
Median Hourly Wage: ~$23/hr in US (2024) = ~$47,840/year. Half of workers earn more, half earn less.
High-Paying Hourly Jobs: Registered Nurses ($35-45/hr), Software Developers ($50-80/hr), Electricians/Plumbers ($30-50/hr), Dental Hygienists ($35-50/hr). These often include benefits, bringing total compensation higher.
HOURLY VS SALARY: PROS & CONS
Hourly Advantages: Paid for all hours worked (including overtime at 1.5×), flexible schedules, clear time tracking. Good for: retail, healthcare, construction, gig work, part-time students.
Hourly Disadvantages: No pay if you don't work (sick days, holidays), unpredictable income, fewer benefits (health insurance, 401k), less job security.
Salary Advantages: Consistent paycheck, better benefits, paid time off, more professional prestige, career advancement opportunities. Typical for: office jobs, management, tech, finance.
Salary Disadvantages: No overtime pay (if exempt), expected to work beyond 40 hrs in many roles, harder to disconnect from work. "Salary" doesn't always mean higher total pay than hourly when you factor in overtime opportunities.
TAX & TAKE-HOME PAY CONSIDERATIONS
Gross vs Net Income: All numbers in this calculator are BEFORE TAX (gross income). Your actual take-home (net) is lower after federal tax (10-37%), state tax (0-13%), Social Security (6.2%), Medicare (1.45%), and benefits deductions.
Typical Take-Home: Expect 70-80% of gross income as take-home. Example: $50,000 gross ≈ $35,000-40,000 net, depending on state, filing status, and deductions.
Benefits Cost: Employer-provided health insurance typically costs $500-1,000/month (employer pays most). 401k contributions (3-6% of salary) also reduce take-home. Factor these when comparing job offers.
Self-Employed/Contractors: If you're 1099 contractor, you pay both employee + employer portions of Social Security/Medicare (~15.3% total). Budget an extra 25-30% for taxes compared to W-2 employees.