Alabama is one of only a handful of US states with no state minimum wage law on the books. That means most workers depend on the federal floor of $7.25 per hour — a rate set by the Fair Labor Standards Act (FLSA) and unchanged since July 24, 2009. This calculator makes it easy to convert that hourly rate (or any wage above it) into the figures that matter for day-to-day budgeting: weekly take-home before tax, monthly gross pay and annual gross salary, with overtime baked in automatically the moment you work more than 40 hours.
How it works
Enter your hourly wage and your average hours per week. The calculator splits your hours into two buckets:
- Regular time — the first 40 hours at your straight-time rate.
- Overtime — any hours beyond 40, rated at 1.5 times your regular rate, as required by FLSA Section 7(a)(1).
Weekly gross = (regular hours x wage) + (overtime hours x wage x 1.5).
Monthly gross is then derived as weekly x 52 / 12, capturing the exact calendar average across short and long months. Annual gross is weekly x 52.
All arithmetic runs in your browser. Nothing is uploaded or stored.
Worked example
Suppose you work 45 hours per week at the federal minimum of $7.25 per hour:
| Metric | Calculation | Result |
|---|---|---|
| Regular pay | 40h x $7.25 | $290.00 |
| Overtime pay | 5h x $10.875 (1.5x) | $54.38 |
| Weekly gross | $290.00 + $54.38 | $344.38 |
| Monthly gross | $344.38 x 52 / 12 | $1,492.31 |
| Annual gross | $344.38 x 52 | $17,907.76 |
At a straight 40 hours per week with no overtime, the federal minimum yields a weekly gross of $290.00, a monthly gross of $1,256.67, and an annual gross of $15,080.00 — before any taxes, Social Security, Medicare or other withholdings.
The tool also shows a federal minimum comparison panel, so you can instantly see how much more (or less) per year your actual wage produces relative to the $7.25 floor.
Alabama minimum wage in context
Alabama’s decision to rely on the federal floor rather than enact its own statute means workers have not seen a mandated pay rise since 2009. Advocates for a higher minimum note that $7.25 buys significantly less in 2025 than it did then due to inflation. Employers, particularly in retail, food service and agriculture, remain subject only to the FLSA requirement unless they choose to pay more to attract staff in a competitive labor market.
Tipped workers are a special case: federal rules allow a direct cash wage as low as $2.13 per hour for tipped employees, provided that tips bring the effective hourly rate to at least $7.25. If tips fall short in any workweek, the employer is legally obligated to make up the difference. Alabama does not supplement or alter these federal tipped-wage rules.
Use the calculator to model any wage scenario — for instance, what a $10/hr, $12/hr or $15/hr wage would mean annually — so you can compare job offers, negotiate pay, or plan a household budget with confidence.