Calculate your gross wages before deductions including overtime
Hours over 40 paid at 1.5× rate
Gross Annual Pay
$0.00
$0.00 per month
Gross Weekly
$0.00
Gross Biweekly
$0.00
Overtime Pay
$0.00
Effective Hourly
$0.00
Estimated Net Pay (75% of Gross)
$0.00 annually
Gross pay is the total amount of money you earn before any deductions are taken out. It represents your complete earnings including regular wages, overtime pay, bonuses, commissions, tips, and any other compensation. Gross pay is the starting point for calculating your taxes and determining your net pay (take-home pay).
Understanding gross pay is essential because it's the figure used by lenders, landlords, and government agencies to assess your financial standing. When a bank evaluates your mortgage application, they look at your gross income. When the IRS calculates your tax liability, they start with your gross income.
Gross pay appears on your pay stub as the top-line figure, usually labeled "Gross Pay" or "Gross Earnings." From this amount, various deductions are subtracted—federal tax, state tax, Social Security, Medicare, retirement contributions, and insurance premiums—to arrive at your net pay.
Calculating gross pay depends on how you're compensated. Here are the methods for different pay structures:
Multiply your hourly rate by regular hours worked, add overtime pay (1.5× rate for hours over 40), and include any bonuses or commissions.
Your gross pay is simply your annual salary divided by the number of pay periods. Add any bonuses or commissions to get total gross pay.
Add base pay (if any) plus all commissions earned during the pay period.
Combine hourly wage (which may be below minimum wage) plus reported tips.
Gross Pay = (Regular Hours × Hourly Rate) + (Overtime Hours × Hourly Rate × 1.5) + Bonus
Gross Annual Salary = Gross Monthly Pay × 12
Gross Weekly Pay = Gross Annual Salary ÷ 52
Gross Biweekly Pay = Gross Annual Salary ÷ 26
Let's calculate gross pay for an hourly worker earning $28/hour with 5 hours of overtime:
Regular Hours: 40
Overtime Hours: 5
Regular Pay: 40 × $28 = $1,120.00
Overtime Pay: 5 × $28 × 1.5 = $210.00
Weekly Gross: $1,120 + $210 = $1,330.00
Biweekly Gross: $1,330 × 2 = $2,660.00
Annual Gross: $1,330 × 52 = $69,160.00
Hourly gross pay is calculated by multiplying your hourly rate by the number of hours worked. For full-time workers at 40 hours per week, this is straightforward. However, many hourly workers have variable schedules, work overtime, or have multiple jobs. Understanding how to calculate hourly gross pay helps you track your earnings accurately.
Overtime pay follows federal law under the Fair Labor Standards Act (FLSA). Non-exempt employees must receive 1.5 times their regular rate for hours worked beyond 40 in a workweek. Some states have additional overtime rules, such as California's requirement for double-time pay after 12 hours in a day.
Here are common hourly rates and their weekly gross pay at 40 hours:
For salaried employees, gross pay is a fixed amount per pay period. If you earn $60,000 annually and are paid biweekly, your gross pay per paycheck is $60,000 ÷ 26 = $2,307.69. This amount doesn't change based on hours worked—salaried exempt employees receive the same pay regardless of whether they work 35 or 50 hours.
Salaried employees don't receive overtime pay under FLSA. However, bonuses, commissions, and other incentive pay can increase gross pay above the base salary. These additional amounts are typically paid in separate checks or added to regular paychecks.
When comparing salaried positions to hourly positions, it's important to consider the total compensation package. A salaried position might offer better benefits, paid time off, and stability, even if the hourly equivalent rate is lower than an hourly position.
Overtime significantly impacts gross pay for hourly workers. The FLSA requires overtime pay at 1.5 times the regular rate for hours worked beyond 40 in a workweek. Some states have stricter requirements, such as daily overtime in California (over 8 hours/day).
Here's how overtime affects weekly gross pay for a worker earning $25/hour:
| Scenario | Hours | Gross Pay |
|---|---|---|
| No Overtime | 40 | $1,000.00 |
| 5 Hours OT | 45 | $1,187.50 |
| 10 Hours OT | 50 | $1,375.00 |
| 15 Hours OT | 55 | $1,562.50 |
The difference between gross and net pay is your total deductions. These include federal income tax (10-37%), state tax (0-13.3%), Social Security (6.2%), Medicare (1.45%), 401(k) contributions, health insurance premiums, and other withholdings. Understanding this difference is crucial for budgeting—always plan your expenses based on net pay, not gross.