How it works
What this estimate calculates
Base annual pay equals the hourly rate multiplied by hours worked per week and working weeks per year. Monthly, semimonthly, biweekly, and weekly figures average that annual total across 12, 24, 26, and 52 calendar periods; separately entered overtime uses its stated hourly multiplier.
Assumptions to keep in mind
- The entered weekly hours and working weeks remain consistent over the modeled year.
- Results are gross pay before taxes, benefits, and payroll deductions.
- Shift premiums, tips, bonuses, commissions, and unpaid absences are excluded unless added to the inputs.
Reviewed references
Sources behind this calculator
Last reviewed: . These references support the concepts and context; their publishers do not review or endorse TrueCost.
- Occupational Employment and Wage Statistics: Calculation (opens in a new tab)U.S. Bureau of Labor Statistics
Converting an hourly rate with annual hours under a stated work schedule.
- Fact Sheet #23: Overtime Pay Requirements of the FLSA (opens in a new tab)U.S. Department of Labor
Context for the editable overtime multiplier and why eligibility must be verified separately.
- Publication 15-T (2026) (opens in a new tab)Internal Revenue Service
The payroll-period counts used for calendar averages.
Questions people ask
Why might the annual result differ from my pay stubs?
Actual hours can vary by pay period, and deductions affect take-home pay. Overtime, unpaid leave, bonuses, and different payroll calendars can also change the total.
How do I model part-time or seasonal work?
Enter the average hours worked in an active week and the number of weeks you expect to work during the year. Use multiple scenarios if the schedule changes often.
Does the calculator include overtime?
Only when overtime hours and a multiplier are provided. Eligibility and overtime rules depend on the job and applicable law, so verify them with the employer or payroll records.
Use the result as a starting point
Try a conservative scenario and an optimistic one. If the decision only works under one narrow set of assumptions, that is useful information. For a purchase, loan, tax, or investment decision, confirm the final figures with current documents and an appropriately qualified professional.
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