Basic Conversion Questions
These are the questions most people start with when they first use an hourly-to-salary calculator.
- How many hours in a work year? 2,080 (40 hrs × 52 weeks). Actual paid hours may differ if you have unpaid leave.
- What is $20/hr annually? $41,600 gross. $33,000–$36,000 net depending on your state.
- What is $15/hr annually? $31,200 gross. $25,000–$27,000 net depending on your state.
- What hourly rate equals $50,000/yr? $24.04/hr at 40 hours/week.
- What hourly rate equals $60,000/yr? $28.85/hr at 40 hours/week.
- What hourly rate equals $75,000/yr? $36.06/hr at 40 hours/week.
- What hourly rate equals $100,000/yr? $48.08/hr at 40 hours/week.
Tax and Take-Home Pay Questions
Gross to net income estimates at common hourly rates
| Hourly Rate | Gross Annual | Est. Net (No State Tax) | Est. Net (High-Tax State) |
|---|---|---|---|
| $13/hr | $27,040 | $22,700 | $19,900 |
| $18/hr | $37,440 | $30,800 | $27,000 |
| $22/hr | $45,760 | $37,200 | $32,400 |
| $28/hr | $58,240 | $46,500 | $40,200 |
| $35/hr | $72,800 | $57,200 | $49,300 |
| $50/hr | $104,000 | $78,500 | $67,000 |
Overtime and Hours Questions
Overtime rules are frequently misunderstood. Here are the most important facts.
1) Federal FLSA requires 1.5× for hours over 40/week for non-exempt employees. 2) California additionally requires OT after 8 hours/day. 3) Exempt employees (salaries above $35,568 in qualifying roles) are not entitled to OT. 4) There is no federal law requiring double time — but California mandates it in specific circumstances.
Freelance and Self-Employment Questions
For freelancers and independent contractors, the hourly-to-salary comparison is more complex because you pay both sides of FICA (15.3% self-employment tax), provide your own benefits, and have to account for non-billable time between projects.
- Add 15.3% SE tax vs. 7.65% for W-2 employees (net difference: ~7.65% more you pay)
- Health insurance: budget $4,000–$12,000/year as a freelancer
- No paid time off: 2 weeks unpaid = ~$2,000–$6,000 in annual lost income at common rates
- No employer retirement match: potential loss of 3–5% of salary
- Rule of thumb: freelance rate needs to be 30–40% higher than equivalent W-2 hourly rate to break even
Benefits and Total Compensation Questions
Total compensation is always larger than base salary or hourly rate. When comparing offers, count everything.
Benefits cost if employer-provided vs. self-provided
| Benefit | If Employer Provides | If You Provide (Self-Employed) |
|---|---|---|
| Health insurance | Free or subsidized | $400–$900/month |
| Dental/vision | $500–$800/yr value | $50–$150/month |
| Retirement match | 3–5% of salary free | $0 employer contribution |
| Paid time off | $1,500–$4,000/yr value | Unpaid time |
| Life/disability ins. | $300–$1,000/yr value | $100–$400/month |
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