How to Convert Between Salary and Hourly Pay
This calculator works in both directions. Converting a salary to an hourly equivalent is useful when comparing job offers, understanding the value of your time, or negotiating pay; converting an hourly wage to a salary tells you what a pay rate means in yearly income for budgeting or a loan application. Both use the same number — the hours you work in a year:
- Salary → hourly: annual salary ÷ (hours per week × weeks per year)
- Hourly → salary: hourly rate × hours per week × weeks per year
The weekly, bi-weekly and monthly results spread the annual total evenly over the year (÷ 52, ÷ 26 and ÷ 12), the way a salary is paid out.
The Standard 2,080-Hour Year
The usual assumption is 40 hours a week for 52 weeks, or 2,080 hours. Salary to hourly: $40,000 ÷ 2,080 = $19.23/hr; $60,000 = $28.85/hr; $80,000 = $38.46/hr; $100,000 = $48.08/hr; $150,000 = $72.12/hr. Hourly to salary: $15/hr × 2,080 = $31,200; $20/hr = $41,600; $25/hr = $52,000; $30/hr = $62,400; $50/hr = $104,000. All of these are gross figures, before tax.
Adjusting for Actual Hours and Time Off
Many salaried employees work more than 40 hours per week. If you work 50 hours a week, your effective hourly rate is your salary ÷ (50 × 52 = 2,600 hours). A $100,000 salary at 50 hours/week is only $38.46/hour — the same as $80,000 at 40 hours. Tracking actual hours worked gives you a more honest picture of your compensation.
Weeks worked matter in both directions. For an hourly worker, unpaid time off lowers annual income: at $25/hour, 50 working weeks gives $50,000 rather than $52,000. For a salaried worker with paid vacation, choosing 50 weeks shows what you earn per hour actually worked, which is higher than the 52-week figure.
Overtime Pay
In hourly-to-salary mode you can add regular overtime hours. Under the federal Fair Labor Standards Act, non-exempt employees must be paid at least 1.5× their regular rate for hours over 40 in a workweek, so the calculator adds overtime at time-and-a-half on top of base pay. For example, $25/hour with 5 overtime hours a week for 52 weeks adds $9,750 (5 × $37.50 × 52), taking $52,000 to $61,750. Some states add daily overtime rules (California generally requires overtime after 8 hours in a day), and exempt salaried employees are not entitled to overtime.
The Value of Benefits in Salary Comparison
When comparing a salaried position to an hourly one, account for benefits. Hourly positions may not include health insurance, retirement matching, or paid time off. Employer-paid health insurance ($5,000–$15,000/year), 401(k) matching (often 3–6% of salary), PTO (typically 2–4 weeks for entry-level), and other perks add substantial value. A $60,000 salary with good benefits often beats a $70,000 hourly contract without them.
Using Salary to Hourly for Freelancing
Freelancers and consultants can use this to set rates. Start with your desired annual income, divide by billable hours (not total hours — account for admin, marketing, and unpaid time), and add a premium for self-employment tax (15.3%) and benefits you fund yourself. Most freelancers need to charge 1.5–2× their employee equivalent to match total compensation.