Methodology

Federal starting point

The default hourly wage is $7.25, the federal minimum wage for covered, nonexempt workers under the Fair Labor Standards Act. When both federal and state laws apply, the worker is generally entitled to the higher applicable standard.

State and regional choices

The selector uses the U.S. Department of Labor’s state minimum wage summary updated July 1, 2026. States without a minimum wage law and states with a lower general rate use the $7.25 federal baseline in the calculator. New York and Oregon include regional options because their general rates vary by location.

The selected number is only a reference. Local ordinances, employer size, industry, age, training status, tips, exemptions, and scheduled increases may change the rate that applies. Enter your actual hourly wage whenever it is known.

U.S. Department of Labor state minimum wages Federal minimum wage questions and answers

Estimated workdays per year

Weekly workdays are multiplied by 52, then adjusted by the fraction of the year worked. For example, five days per week for nine months gives 5 × 52 × (9 ÷ 12) = 195 workdays.

Annual and monthly income

Annual income = hourly wage × hours per day × estimated workdays per year. Average monthly income is annual income divided by 12, which spreads seasonal work evenly for long-term planning comparisons.

This is a simplified gross estimate. It excludes overtime, paid leave, bonuses, payroll and income taxes, benefits, unpaid breaks, and changing work schedules.

Income-rate mode

Monthly contribution = average monthly gross income × saving rate. This mode is useful when the amount you can invest should move with income. The saving rate can range from 0% to 100%.

Fixed-amount mode

If you already know the amount your budget can support, enter it directly. Both modes assume an equal contribution at the end of every month, with no skipped deposits or withdrawals.

Converting an annual return

The annual return becomes an equivalent monthly rate using monthly rate = (1 + annual return)^(1 ÷ 12) − 1. Twelve compounded months therefore match the annual assumption instead of simply dividing the annual rate by 12.

End-of-month contribution

Each month applies the return to the existing balance and then adds the contribution: new balance = previous balance × (1 + monthly rate) + monthly contribution. Beginning-of-month or irregular deposits would produce different results.

Negative returns

Annual returns down to -20% are accepted for stress testing. Under a negative-return assumption, estimated assets can finish below total principal.

A future dollar may buy less than a dollar today. WageBloom estimates present purchasing power with nominal assets ÷ (1 + annual inflation)^investment years. At 2% annual inflation, a 30-year nominal balance is divided by roughly 1.81.

Actual inflation changes from year to year and each household has a different spending pattern. The result is a comparison tool, not a forecast of exact future expenses.

The English calculator starts at $7.25 per hour, eight hours per day, five days per week, 12 working months, a 30% saving rate, 30 years, a 6% annual return, and 2% annual inflation.

Swipe horizontally to view the full table

Displayed figures may be rounded. Changing any input recalculates the result immediately using the same formulas.

• Federal, state, and local income taxes, payroll taxes, credits, and deductions
• Overtime, tips, bonuses, paid leave, benefits, wage increases, and job changes
• Investment taxes, trading costs, fund fees, and advisory fees
• Year-to-year return changes, sequence risk, losses, and market shocks
• Changing contributions, withdrawals, emergency funds, and debt repayment
• Local minimum wage ordinances and individual coverage determinations

Use the output as an educational starting point, not as financial, tax, legal, or employment advice. Review official agencies and qualified professionals before making real decisions.