I am starting a new job
A new job is exciting, and it is a great time to get your money in order. This page shows what you will really take home and how to plan with it. It takes about 15 minutes.
- 1
Understand your pay
Turn your offer into hourly, monthly and yearly pay so you can compare jobs fairly. Type your pay and if it is per hour or per year.
How much do I earn per hour, month or year?
Convert my pay →Tip: Compare offers using yearly pay plus benefits like health insurance and retirement match.
- 2
Compare it with your old pay
See how big the jump really is. Type your old pay and your new pay to get the raise in percent and dollars.
How much is my pay raise really worth?
See my raise →Tip: A raise that is smaller than inflation means your pay buys a little less than before.
- 3
See your take-home paycheck
Your paycheck is your pay after tax and deductions. Type your pay, how often you are paid and your tax rates to see what lands in your bank.
How much of my pay will I actually take home?
Check my paycheck →Tip: Check your first real pay stub. If tax taken out looks wrong, you can update your W-4 form with your employer.
- 4
Know what extra hours pay
If you are paid by the hour, extra hours may pay more. Type your hourly pay, normal hours and extra hours.
How much will I earn for my overtime hours?
Count my overtime →Tip: Many hourly jobs pay time and a half for hours over 40 in a week. Ask your employer about their rules.
- 5
Make a budget with your new pay
Give every dollar a job before it is spent. Type your monthly take-home pay to split it into needs, wants and savings.
How should I split my income between needs, wants and savings?
Make my budget →Tip: Set up automatic savings on payday so you save before you spend.
- 6
Start your 401(k)
A 401(k) is a retirement account through work. Type your salary, the percent you will put in and any employer match.
How much will my 401(k) be worth when I retire?
Plan my 401(k) →Tip: Raising your 401(k) percent when you start a new job is easy, because you never got used to the money.
Questions people ask
How much is my salary per hour?
Divide your yearly salary by the hours you work in a year. A full-time year is often counted as about 2,080 hours (40 hours times 52 weeks). The salary calculator does this for you.
Why is my paycheck smaller than my salary?
Money is taken out for income tax, Social Security and Medicare, and sometimes state tax. Health insurance and retirement savings can also come out. What is left is your take-home pay.
What is a good raise when changing jobs?
It varies a lot by field, place and experience. Many people look for a raise that beats inflation and covers any new costs, like a longer commute. Compare the whole package, not just the salary.
How should I budget my first paycheck?
A simple start is the 50/30/20 rule: about half for needs, 30% for wants and 20% for savings and debt. Adjust it to fit your life and costs.