To calculate your yearly salary, multiply your base pay by pay periods, add overtime and bonuses, then subtract pre-tax deductions for take-home.
You came here to turn paychecks into a clean annual number. This page gets you there fast, with plain math you can trust.
What Yearly Salary Means
Your yearly salary can mean two things. Gross pay is what you earn before taxes and deductions. Net pay (take-home) is what lands in your bank account after withholding, benefits, and other deductions. Recruiters, offer letters, and most forms quote gross pay. Budgeting calls for both: gross for comparisons, net for cash flow.
Two Ways People Use The Term
- Annual gross: base pay plus overtime, commissions, and bonuses.
- Annual take-home: what you actually receive after withholding and deductions.
Pay Frequencies And Annual Multipliers
Use the multipliers below to convert a single paycheck or rate to an annual gross figure. Then adjust for overtime, bonuses, and unpaid time. Use these multipliers anytime, anywhere.
| Pay Frequency Or Rate | Periods Per Year | Annual Multiplier |
|---|---|---|
| Hourly (40 hours/week) | 2,080 hours | Rate × 2,080 |
| Daily | 260 days | Rate × 260 |
| Weekly | 52 weeks | Pay × 52 |
| Biweekly | 26 checks | Pay × 26 |
| Semimonthly | 24 checks | Pay × 24 |
| Monthly | 12 checks | Pay × 12 |
| Commission Only | Varies | Sum all payouts |
| Contract/Per-Project | Varies | Sum all assignments |
How To Calculate Your Yearly Salary With Pay Stubs
Grab a recent pay stub. You’ll see rate, hours, gross, taxes, and deductions. If you’re unsure how to calculate your yearly salary, use the quick path here, then fine-tune with the checks that follow.
Step 1: Build Your Base Annual Pay
Hourly: multiply your hourly rate by hours per week, then by 52. If your hours vary, use your average week for the period you care about.
Salaried: multiply a full paycheck by the number of checks per year from the table above.
Step 2: Add Overtime And Differentials
For covered, nonexempt roles in the United States, overtime for hours over 40 in a week pays at least 1.5× the regular rate. Add that premium to your annual total.
Overtime formula: overtime hours × hourly rate × 1.5 × weeks with overtime.
If you earn night or weekend differentials, add those amounts too.
Step 3: Add Bonuses And Commissions
Add guaranteed bonuses, sales commissions, and profit share you actually received during the year. If a bonus is discretionary or not yet paid, keep it off the confirmed total.
Step 4: Count Unpaid Time
Unpaid leave, unpaid holidays, and gaps reduce annual pay. If your paycheck shows fewer hours or a smaller salary check for a period, reflect that in the total.
Step 5: Get To Net Pay (Take-Home)
From gross, subtract employee-side payroll taxes and other deductions. Common items: Social Security, Medicare, federal and state income tax withholding, health premiums, HSA or FSA, and retirement plan contributions. Pre-tax deductions lower taxable wages, so net pay rises even when gross stays the same.
Calculate Annual Pay From Hourly Rate
Say you earn $22 per hour and work 40 hours each week. Base annual pay is $22 × 2,080 = $45,760. Now add 5 hours of overtime for 20 weeks during peak season: 5 × $22 × 1.5 × 20 = $3,300. New annual gross is $49,060. If you made a $1,000 sales bonus, total gross is $50,060.
Next, subtract pre-tax deductions you choose to fund. If you put $2,000 into a 401(k) and $600 into an HSA, taxable wages drop by $2,600. Your gross is still $50,060, but taxable wages fall to $47,460. Your take-home then depends on how much your employer withholds for taxes and insurance.
Fast Checks That Keep The Math Honest
Match Your Pay Frequency
Don’t multiply a biweekly check by 24. Use 26. If your employer runs weekly payroll, use 52. A mismatch is the most common cause of over- or under-stated salary totals.
Check Overtime Eligibility
Some salaried roles are exempt from overtime. Hourly roles are usually covered. If you’re covered, make sure the 1.5× premium is in your total.
Separate Gross From Net
Gross pay is the starting line. Net is what you live on. Use both numbers for planning: gross for offer comparisons, net for bills and savings.
Trusted References While You Calculate
Two official resources help you check the tricky parts. The U.S. Department of Labor overtime rules explain when overtime applies and set the 1.5× rate. The IRS Tax Withholding Estimator turns gross pay, pre-tax choices, and filing status into a closer take-home figure.
What To Count And What To Skip
Here’s a compact rule set to keep your annual figure clean.
- Count: base pay, overtime, differentials, commissions, tips, and paid bonuses.
- Skip: expense reimbursements, per-diem, employer-paid insurance, and matching contributions.
- Count, then adjust: pre-tax deductions reduce taxable wages; post-tax deductions reduce take-home only.
Paycheck Items And Annual Treatment
| Item | Annual Treatment | Notes |
|---|---|---|
| Base Pay | Multiply by periods per year | Salaried or hourly |
| Overtime | Add 1.5× hours above 40/week | When covered |
| Shift Differential | Add dollar amount | Night/weekend |
| Commissions | Add paid amounts | Use paid period |
| Bonuses | Add paid amounts | Exclude unpaid promises |
| Pre-Tax Deductions | Subtract from taxable wages | 401(k), HSA, FSA |
| Post-Tax Deductions | Subtract from take-home | Roth, garnishments |
| Employer-Paid Benefits | Do not count in your pay | Company expense |
Edge Cases You Might Hit
Variable Hours Or Gig Work
Use a rolling average. Pick a window, sum gross pay inside that window, annualize it with the right multiplier, and update each month.
Mid-Year Raise Or Title Change
Split the year. Annualize each segment at its own rate, then add them. That keeps your number aligned with real earnings.
Multiple Jobs
Annualize each job on its own. Then add the totals. If you’re targeting take-home, run withholding math on the combined gross to avoid a surprise at filing time.
Commission-Heavy Roles
Build two numbers: a confirmed floor (base salary plus paid commissions to date) and a forecast (base plus average commission from your last few months). Use the floor for contracts and the forecast for personal planning.
Mini Worksheet: From Pay Stub To Annual Pay
Inputs To Pull
- Pay frequency and next pay date.
- Rate (hourly or salary per check).
- Year-to-date gross and hours.
- Year-to-date overtime hours and premium.
- Year-to-date commissions and bonuses.
- Pre-tax deductions and post-tax deductions.
Five-Line Method
- Base: rate × hours per week × 52, or check × periods per year.
- Overtime: OT hours × rate × 1.5 × weeks with OT.
- Add: commissions and bonuses already paid.
- Subtract: unpaid gaps.
- Result: annual gross. For take-home, subtract withholding and deductions.
If you need a refresher on how to calculate your yearly salary again, scan the steps above and the two tables. The math is short and repeatable.
What About Taxes And Paycheck Withholding?
Payroll has two buckets. First, fixed rates that apply to most paychecks: Social Security and Medicare. Second, income tax withholding based on your filing status, taxable wages, and W-4 choices. You don’t have to solve the full tax return to get a decent take-home estimate, but a quick check with an official tool helps.
Self-Employment And Contract Work
If you’re paid on a 1099 or invoice clients, you won’t have withholding taken out during the year. Your “salary” in plain terms is your business income after expenses. Start with gross receipts, subtract ordinary and necessary expenses, then set aside money for self-employment tax and income tax. A simple way to annualize is to total the last three months of net income, divide by three, and multiply by twelve. This evens out bumps without overreacting to one lucky month.
Self-employment tax covers both sides of Social Security and Medicare. Your effective rate on that piece is higher than a W-2 paycheck, so build that into cash planning. Many solo workers park 25–30 percent of net income in a separate account for quarterly payments. That cushion won’t be perfect for every case, but it keeps surprises away when bills come due.
Common Mistakes That Skew Annual Pay
- Using 24 for biweekly payroll: biweekly pays 26 checks.
- Forgetting unpaid weeks: new-hire delays, leaves, and gaps matter.
- Counting employer perks as pay: the company’s health premium isn’t your wage.
- Mixing gross and net: you need both numbers, but don’t swap them.
- Projecting unpaid bonuses: only add dollars that cleared.
- Skipping overtime math: if you’re covered, the 1.5× premium raises your annual total.
Make Your Number Actionable
Once you’ve nailed your yearly salary, put it to work. Set a savings rate that fits your goals, adjust W-4 settings if your take-home feels off, and run new offers through the same steps so you’re comparing apples to apples. Small tweaks like raising pre-tax savings or shifting to a lower-cost health plan can change net pay more than you expect, even when gross stays constant.
Bring It All Together
To recap your path: pick the right multiplier for your pay frequency, add overtime and variable pay, subtract unpaid gaps, and then account for deductions and withholding to see net. With this flow you can answer a recruiter, pick a budget number, or compare two offers with confidence. Keep the worksheet handy and rerun the math after any pay change.