How to use it
- Choose the direction: hourly to salary, or salary to hourly.
- Enter the amount, your usual hours per week and the number of paid weeks per year.
- Read every pay period at once: hourly, daily, weekly, biweekly, semimonthly, monthly and annual.
These figures are gross pay, before taxes and deductions. Your take-home pay is lower.
The formulas
Annual = Hourly rate × Hours per week × Paid weeks
Hourly rate = Annual ÷ (Hours per week × Paid weeks)
Biweekly = Hourly rate × Hours per week × 2
Semimonthly = Annual ÷ 24 Monthly = Annual ÷ 12
The 2,080-hour rule
Full-time work in the US is usually counted as 40 hours a week for 52 weeks, which is 2,080 hours a year. That gives a shortcut most recruiters use: multiply your hourly rate by 2,000 for a quick annual estimate, or divide a salary by 2,080 for the hourly equivalent. A $25 hourly rate is about $52,000 a year. A $75,000 salary is about $36.06 an hour.
Worked example
Maria earns $28.50 an hour and works 37.5 hours a week with two weeks of unpaid leave, so 50 paid weeks. Her annual gross is 28.50 × 37.5 × 50 = $53,437.50. That is $1,068.75 a week, $2,137.50 biweekly and $4,453.13 a month. If her employer offered a salaried role at $55,000 for the same hours, that would be an effective $29.33 an hour.
Paid time off changes the math
This is the detail that trips people up. A salaried worker is usually paid for holidays and vacation, so 52 weeks is the right number. An hourly worker who takes two unpaid weeks is only paid for 50. Comparing $30 an hour with a $62,400 salary is only fair if both include the same paid time off. If your time off is unpaid, lower the paid weeks in the calculator and compare again.
Biweekly, semimonthly and the three-paycheck month
Biweekly pay means 26 paychecks a year, every other Friday. Semimonthly means 24 paychecks, usually on the 15th and the last day of the month. They are not the same size. Biweekly workers get two months a year with three paychecks, which is a useful moment for savings or a bill that only comes once a year. Semimonthly checks are slightly larger but always arrive twice a month.
What this calculator does not include
- Overtime. If you regularly work more than 40 hours, use the overtime calculator, because extra hours are usually paid at 1.5 times your rate.
- Taxes. Federal income tax, Social Security and Medicare, state and local taxes, and benefit deductions all reduce gross pay.
- Benefits. Health insurance, retirement matching and paid leave can be worth thousands of dollars and are not in the hourly rate.
- Bonuses and shift differentials, which vary too much to model here.
Comparing two job offers
Convert both offers to the same basis before deciding. Start with the annual gross from this calculator, then add the employer's retirement match and subtract any extra you would pay for health insurance. Finally, factor in commuting costs and unpaid overtime expectations. A salaried role that expects 50-hour weeks at $60,000 is really about $23 an hour, less than an hourly job paying $25 for 40 hours.
Frequently asked questions
How much is $25 an hour annually?
About $52,000 a year at 40 hours a week for 52 weeks, before taxes.
How do I convert a salary to an hourly rate?
Divide the annual salary by your yearly hours. At 40 hours a week for 52 weeks, divide by 2,080.
How many work hours are in a year?
2,080 hours for a standard 40-hour week across 52 weeks.
What is the difference between biweekly and semimonthly pay?
Biweekly is 26 paychecks a year, every two weeks. Semimonthly is 24 paychecks, twice a month.
Is this gross or net pay?
Gross pay, before taxes and deductions. Your take-home pay will be lower.
Last reviewed on by the Dailycaltor team.