Salary ↔ hourly converter

How it's calculated

The converter spreads pay evenly over the hours you are paid for. It works in either direction: from an annual salary to an hourly rate, or from an hourly rate to a yearly total. From the annual figure it also shows monthly, semimonthly, biweekly, weekly and daily equivalents.

It can also show your pay per hour actually worked. Paid vacation days and holidays mean you are paid the same for fewer working hours, so each hour you do work is worth more.

All results are gross pay, before taxes and deductions. To see take-home pay, use the paycheck calculator, which accepts either a salary or an hourly rate.

The formula

1. Paid hours per year = hours per week × paid weeks per year.
2. Annual pay = your salary (salary → hourly), or hourly rate × paid hours (hourly → salary).
3. Hourly rate = annual pay ÷ paid hours.
4. Monthly = annual ÷ 12. Semimonthly = annual ÷ 24. Biweekly = annual ÷ 26.
5. Weekly = annual ÷ paid weeks. Daily = annual ÷ (paid weeks × 5).
6. Hours actually worked = paid hours − paid days off × (hours per week ÷ 5).
7. Pay per hour worked = annual pay ÷ hours actually worked.

Worked example

A $75,000 salary for a 40-hour week, paid for all 52 weeks, works out to $36.06 an hour, $6,250 a month and $2,885 every two weeks.

With 20 paid days off (vacation plus holidays), the same salary pays $39.06 for each hour actually worked.

Going the other way, $28 an hour for 40 hours a week over 50 paid weeks is $56,000 a year.

Assumptions and limitations

• Gross pay only. No taxes, benefits or deductions are taken out. The paycheck calculator does that.
• Five-day weeks. Daily pay and the hours removed for each paid day off assume your weekly hours are spread over five days.
• No overtime. Every hour is paid at the same rate. If you work overtime as a nonexempt employee, your actual pay is higher; enter overtime hours in the paycheck calculator to include it.
• At most 52 weeks. Some calendar years have an extra weekly or biweekly payday. That changes the size of each paycheck for salaried employees, not the annual salary, and it is not modeled here.
• Paid days off are inside the paid weeks. Use "paid weeks per year" for unpaid time off and "paid days off" for time off you are paid for.

For how salary and hourly offers compare once overtime, benefits and taxes are counted, see our guide to salary vs hourly after tax.