Converting between pay periods
The core conversion assumes a standard full-time schedule: 40 hours/week, 52 weeks/year (2,080 hours/year). To go from hourly to annual, multiply by 2,080. To go from annual to hourly, divide by 2,080. Monthly figures use annual salary divided by 12 -- note this isn't exactly the same as weekly pay times 4, since most months have slightly more or less than exactly 4 weeks, which is a common source of confusion when comparing a job posting's "monthly" figure to a biweekly paycheck.
From gross to take-home pay
Gross salary is what's advertised in a job offer; take-home (net) pay is what actually lands in your bank account after taxes and other withholdings -- income tax, payroll tax (Social Security/Medicare in the US, or the local equivalent), and any pre-tax deductions like retirement contributions or health insurance premiums. The gap between gross and net commonly runs 20-35% depending on your country, income level, and elected deductions, which is why comparing take-home pay -- not just the headline salary -- matters when weighing job offers, especially across different tax jurisdictions.
Frequently asked questions
Why does my paycheck not match salary ÷ 12? Most employers pay biweekly (26 paychecks/year) or semi-monthly (24 paychecks/year), not monthly, so a single paycheck is salary ÷ 26 or ÷ 24, not ÷ 12. Two months a year have three biweekly paychecks instead of two, which is why those months feel unusually flush.
Does this account for overtime? No -- this converts a stated base salary or hourly rate at standard hours. Overtime (commonly 1.5x pay beyond 40 hours/week for hourly workers) needs to be added separately based on actual hours worked.
How accurate is the take-home estimate? It's a reasonable approximation using typical deduction rates, but your actual number depends on your specific tax bracket, filing status, state/local taxes, and elected benefits -- check an actual pay stub or your employer's payroll estimator for a precise figure.