Annual Income Calculator

How to use this calculator

Three tabs, three different starting points. Pick the one that matches how your income works.

Hourly to Annual is for anyone paid by the hour. Enter your hourly rate, how many hours you work per week, and how many weeks per year you actually work. If you take unpaid leave, adjust the weeks down. If you regularly work overtime, enter those hours separately and pick your overtime multiplier. Most hourly workers in the US are entitled to 1.5x for hours above 40 per week, though some employers pay double time for certain situations.

Salary Breakdown starts with a known salary figure. Enter your pay as annual, monthly, biweekly, or weekly, and the calculator converts it. Add a bonus and commission on top if you receive them. The chart shows how your total income breaks down month by month, which is useful for budgeting.

Multiple Income combines up to four income streams. Label each one — freelance work, rental income, investments, a second job — and get the combined annual total with the same monthly, biweekly, and weekly breakdowns.

All three modes show you the same output: annual gross income, monthly gross, biweekly gross, weekly gross, and effective hourly rate.

The formulas behind the numbers

All annual income calculations are fundamentally about converting between time periods. Here’s what the calculator does under the hood.

Hourly to annual:

Salary to annual:

Breakdowns from annual:

The effective hourly rate is particularly useful. It lets you compare a salaried job to a per-hour job on equal terms, accounting for total compensation.

Notice that biweekly and weekly employees get “extra” paychecks a couple of times per year in months where the calendar produces an extra pay cycle. For biweekly employees, this happens twice a year. It’s not extra money — it’s just the same annual income distributed into more or fewer chunks depending on the month.

Worked examples

Gross vs. net: what you actually take home

Annual income figures in this calculator are gross, meaning before taxes and deductions. What lands in your bank account is net income, also called take-home pay.

The gap between gross and net depends on several factors:

Federal income tax uses a progressive marginal rate system. For 2024, the brackets for single filers start at 10% on the first $11,600 and top out at 37% for income over $609,350. Most middle-income earners pay an effective federal rate of 12-22%.

State income tax ranges from 0% (Texas, Florida, Nevada, and others) to over 13% in California for high earners. Most states are somewhere in the 4-8% range.

FICA taxes are Social Security (6.2% on wages up to $168,600 in 2024) and Medicare (1.45% on all wages, plus a 0.9% surtax above $200,000 for single filers). Combined, that’s 7.65% for most earners.

Pre-tax deductions reduce your taxable income: 401(k) contributions, health insurance premiums, FSA contributions, and HSA contributions all come out before income tax is calculated.

A rough rule for estimation: if you earn between $45,000 and $95,000 as a single filer, expect to keep about 70-75% of gross income as take-home pay. Higher earners will keep less. Lower earners may keep more due to tax credits.

The number on your offer letter is gross. The number you spend from is net. Always know which one you're comparing.

Overtime rules and how they change your annual income

If you’re an hourly worker, overtime can add thousands to your annual income. Understanding the rules helps you predict your earnings accurately.

Federal law (FLSA) requires most employers to pay 1.5x the regular rate for hours worked above 40 in a single workweek. This applies to non-exempt employees. Salaried employees classified as exempt (generally those earning above the FLSA salary threshold and performing specific job duties) are not entitled to overtime.

The FLSA overtime threshold was raised in 2024 to $684 per week ($35,568 per year). Employees earning below this amount generally qualify for overtime regardless of their job duties.

State laws can be more generous. California, for example, requires overtime after 8 hours in a single day, not just 40 hours in a week. Some states also require double time in specific circumstances.

Double time is not federally required but is common in union contracts and industries with demanding schedules. It kicks in for hours beyond 12 in a single day in some California cases, and for the seventh consecutive day of work in a workweek.

Here’s how much overtime can affect a full-year income:

Ten overtime hours per week at $25/hr adds nearly $20,000 to annual income. Over a career, that kind of difference compounds significantly into retirement savings and investment growth.

Multiple income streams: adding it all up

More people have multiple income sources than at any point in recent history. Freelancing, rental properties, dividends, gig economy work, and side businesses are all common additions to a primary salary.

When adding up multiple streams, be consistent about whether you’re using gross or net figures:

• W-2 income (employer-reported wages): always use the Box 1 amount from your W-2, which is gross wages before federal income tax withholding but after pre-tax benefits.
• Self-employment / freelance income: use net profit (revenue minus business expenses), not gross revenue. This is the Schedule C net income figure.
• Rental income: use net rental income after deducting mortgage interest, property taxes, insurance, repairs, and depreciation. A property generating $2,000/month in rent might yield only $500-$800/month in net income.
• Investment income: use actual distributions or realized capital gains, not paper appreciation in account value.

Being accurate here matters because lenders, landlords, and programs that verify income will use your tax returns. If your Schedule C shows $40,000 in freelance revenue but $30,000 in expenses, your income for qualification purposes is $10,000, not $40,000.

Using annual income for financial planning

Knowing your annual income number precisely gives you the foundation for almost every financial calculation.

Budgeting: The 50/30/20 rule allocates 50% of take-home pay to needs, 30% to wants, and 20% to savings and debt payoff. Without an accurate annual income figure, you can’t set realistic monthly targets.

Emergency fund: Conventional guidance says 3-6 months of expenses. But some advisors recommend sizing it as a percentage of annual income (3-6 months of take-home pay). Either way, you need your annual income number.

Retirement savings: Fidelity’s common benchmark suggests saving 15% of pre-tax income for retirement. With a $70,000 gross income, that’s $10,500 per year or $875 per month. Knowing your gross annual makes this calculation clean.

Home affordability: Most lenders cap your total housing payment at 28% of gross monthly income, and total debt payments at 36-43%. A household with $90,000 annual gross ($7,500/month) can typically afford a housing payment up to $2,100/month.

Life insurance: A common rule is to carry coverage equal to 10-12 times your annual income. At $65,000 income, that suggests $650,000-$780,000 in coverage.

Debt-to-income ratio (DTI): Lenders calculate DTI as total monthly debt payments divided by gross monthly income. A DTI below 36% is considered healthy. Your gross monthly income — annual divided by 12 — is the denominator in that calculation.

Savings rate: If you want to track how much you’re saving, you need gross annual income as your baseline. A 20% savings rate on a $75,000 income means $15,000 per year or $1,250 per month put toward savings and investments.

Every financial rule of thumb starts with your income. Get that number right and everything else is just multiplication.

The bottom line

Annual income is a deceptively simple concept with a lot of moving parts. Whether you’re comparing job offers, applying for a mortgage, figuring out how much to save, or just understanding where you stand financially, you need a clean, accurate annual figure.

This calculator handles the three most common scenarios: hourly to annual (with overtime), salary breakdown with bonus and commission, and multiple income streams combined. The effective hourly rate output is particularly useful for comparing jobs across different pay structures.

Run the numbers for your situation, note your gross annual, then use a take-home calculator to estimate your net. That two-number picture — gross and net — gives you everything you need to plan accurately.