How to use the gross pay calculator
- Enter your hourly rate.
- Choose weekly or biweekly pay.
- Enter the hours worked in each week. Biweekly pay periods have two weeks.
- Keep time and a half after 40 hours checked to apply federal overtime to each week separately.
Formula
Each week: regular hours = smaller of hours and 40; overtime hours = hours over 40
Week pay = regular hours x rate + overtime hours x rate x 1.5
Period gross pay = sum of the weeks
Overtime is judged one workweek at a time, so a long week is not offset by a short one.
Worked example: a biweekly check
The rate is $21.50. Week 1 is 40 hours: 40 x $21.50 = $860.00. Week 2 is 44 hours: 40 x $21.50 = $860.00 plus 4 x $32.25 = $129.00, which is $989.00.
Gross pay for the period is $860.00 + $989.00 = $1,849.00. If this repeated for a full year of 26 pay periods, gross pay would be $48,074.00.
Gross pay is not take-home pay
Gross pay is what you earn before anything is withheld. Federal income tax, Social Security, Medicare, state taxes, health insurance and retirement contributions all come out of it. SumPanda does not estimate those because they depend on your tax forms and benefit choices.
Why your paycheck is smaller than this number
Common deductions include federal income tax withholding, Social Security (6.2 percent of wages up to an annual limit), Medicare (1.45 percent), state and local taxes and your share of health insurance or retirement contributions. Some are fixed percentages and others depend on the tax form you submitted to your employer, which is why this tool shows gross pay only.
Assumptions and limits
- Federal overtime rules only.
- Weekly hours are decimal hours, such as 37.5.
- Bonuses, tips, commissions and shift differentials are not included.
- Annualized gross assumes every pay period looks like this one.
Frequently asked questions
How do I calculate weekly pay?
Multiply hours by your rate. Add time and a half for hours over 40. 38 hours at $18 is $684.
Why does the calculator ask for two weeks?
A biweekly paycheck covers two workweeks, and overtime is figured on each one separately.
Can I use it for a salary?
Use the hourly to salary calculator to convert, then divide by the number of pay periods.