Salary Calculator

The Real Talk About Your Paycheck

Here's the brutal truth I wish someone had told me when I got my first job offer: that exciting $60,000 salary? You're not seeing $60,000. Not even close. Between federal taxes, state taxes, Social Security, Medicare, health insurance, and retirement contributions, you might take home $42,000-$45,000... if you're lucky.

Your gross salary is that impressive number on your offer letter - the amount before anyone touches it. Your net salary (what I call "your actual paycheck") is what hits your bank account after the government, your state, and your employer take their cuts. And trust me, those cuts add up faster than you'd think.

Where Your Money Actually Goes (The Lineup)

Federal Income Tax - This is the big one. The US uses progressive tax brackets, meaning higher earnings get taxed at higher rates. Earning $60k? You might pay 12-22% depending on your filing status. Earning $120k? That top portion gets hit with 24%. Don't get me started on what happens at $200k+.

Social Security (FICA) - A flat 6.2% up to $160,200 (as of 2023). Yes, there's a cap, which means high earners pay a smaller percentage of their total income. Fair? That's a debate for another day. But for most of us, that's 6.2% automatically gone from every paycheck.

Medicare - Another 1.45%, no cap. Earn $500k? Still paying 1.45%. Earn $30k? Also 1.45%. Plus, high earners ($200k+ single, $250k+ married) pay an additional 0.9% Medicare surtax.

State and Local Taxes - This varies WILDLY. Texas and Florida? Zero state income tax (you're welcome). California? Up to 13.3% at the top bracket. New York City? State tax PLUS city tax. Your location can swing your take-home by $10k+ annually. Our calculator doesn't include state taxes because there are literally 50 different systems to account for.

Health Insurance - Most employers cover part of your premium, but you'll still pay $50-$300+ per paycheck depending on your plan and family size. That family PPO plan? Could easily be $500+ monthly out of your pocket.

Retirement Contributions (401k, IRA) - Not mandatory, but if you're not contributing at least enough to get your employer match, you're literally leaving free money on the table. I usually recommend 10-15% total, but that obviously reduces your take-home.

Converting Between Pay Periods (The Quick Math)

Job offers come in all formats. Some companies quote annual, others hourly, some even weekly. Here's how to translate between them so you're comparing apples to apples:

$60,000 annual = $5,000/month = $1,154/week = $28.85/hour
(Based on 40 hours/week, 52 weeks/year = 2,080 hours annually)

$35/hour = $72,800 annually = $6,067/month = $1,400/week
(Same math: multiply hourly by 2,080 to get annual)

Here's the trap though: these are gross numbers. That $35/hour sounds amazing until you realize you're actually seeing $25-26/hour after taxes. Always calculate net, not gross, when budgeting.

Negotiating Your Salary (Or: How to Not Leave $10k on the Table)

I've coached dozens of people through salary negotiations, and the number one mistake? Not negotiating at all. Roughly 70% of people accept the first offer, which is wild because most companies expect you to negotiate. They literally budget for it.

Do your homework first. Check Glassdoor, Levels.fyi (for tech), Payscale, and talk to people in similar roles. Know what the market pays for your position in your location. If they offer $75k but the market rate is $85k, you have leverage.

Timing is everything. Don't negotiate during the interview. Wait until you have a written offer. Once they've decided they want YOU specifically, your negotiating position is strongest. Before that, you're competing against other candidates.

Think total compensation, not just base. Can't budge on base salary? Negotiate sign-on bonus, year-end bonus percentage, extra vacation days, remote work flexibility, professional development budget, or earlier performance review for a raise. I once negotiated an extra week of vacation when the salary was locked - worth $2,300 to me annually.

Have a number AND a justification. Don't just say "I want more." Say "Based on my research, similar roles in this market pay $80-90k, and given my 5 years of experience plus my Python certification, I was hoping for $85k." Data + logic = credibility.

Be prepared to walk. If you absolutely can't live on their offer, be willing to decline. Desperation shows, and it kills your negotiating power. I've seen companies come back with better offers after a polite "thank you, but I'll need to decline" more times than you'd think.