Methodology and sources

Formulas

• Yearly pay = hourly rate × hours per week × paid weeks per year. The default is 40 × 52 = 2,080 hours.
• Monthly pay = yearly pay ÷ 12. Weekly pay = yearly pay ÷ paid weeks.
• Every two weeks = yearly pay ÷ 26. Twice a month = yearly pay ÷ 24.
• Daily pay = hourly rate × hours per day (hours per week ÷ days per week).
• Overtime rate = regular rate × multiplier (1.5 for time and a half, 2 for double time).
• Freelance minimum rate = (income to keep ÷ (1 − tax share) + yearly expenses) ÷ (billable hours per week × working weeks).

Some employers, including the U.S. federal government, use 2,087 hours for a work year, which averages leap years. The difference is under 0.4%.

Reference figures

• Federal minimum wage: $7.25 an hour, set by the Fair Labor Standards Act and unchanged since July 24, 2009. Source: U.S. Department of Labor, Wage and Hour Division. Many states and cities set a higher minimum.
• Median hourly wage, all occupations: $24.51. Mean hourly wage: $33.54. Mean annual wage: $69,770. Source: Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025 estimates, released May 15, 2026.
• Employee Social Security and Medicare (FICA) share: 6.2% + 1.45% = 7.65% of wages, with Social Security applying only up to a yearly wage cap. Source: Internal Revenue Service.
• Overtime: at least 1.5 times the regular rate for hours over 40 in a workweek for non-exempt employees. Source: U.S. Department of Labor.

Limits

Results are gross pay. Net pay depends on federal, state and local income tax, filing status, benefits and other deductions, which these pages do not estimate. Budget splits (50/30/20) and the 30% rent guideline are common rules of thumb, not recommendations for any one household.

Figures last reviewed October 2, 2026.