How to use it
- Use the formula below with your own figures.
The formula
Salary = hourly × hours/week × weeks/year.
Worked example
$25/hour full-time is about $52,000 a year.
Frequently asked questions
Full-time hours?
Often 40/week, 52 weeks.
Before or after tax?
This shows gross pay.
Tips
- Know your marginal vs effective rate.
- Set money aside as you earn if tax isn't withheld.
- Keep receipts for anything deductible.
Key terms
- Marginal rate
- The rate on your top slice of income.
- Effective rate
- Your overall average tax rate.
- Deduction
- An amount subtracted from taxable income.