The basic conversion
An annual salary is the hourly rate multiplied by the hours you work each week and the number of paid weeks in a year. At 25 per hour for 40 hours a week over 52 weeks, that is 25 × 40 × 52 = 52,000 a year. Going the other way, divide the annual salary by the same number of hours: 52,000 ÷ (40 × 52) = 25 an hour. This calculator also breaks the figure down into monthly (annual ÷ 12), biweekly (two weeks of pay), weekly and daily amounts, assuming a five-day week.
Why the weeks and hours matter
The rule of thumb "multiply by 2,080" assumes 40 hours for 52 weeks, with paid time off included. If you are paid hourly and take two unpaid weeks, enter 50 as the paid weeks. Part-time workers should change the weekly hours. A salary of 52,000 for a 37.5-hour week works out to 26.67 an hour, not 25. Entering your real schedule gives a more honest hourly comparison between jobs.
Comparing a salaried and hourly offer
- Include unpaid overtime. A salaried job requiring 50 hours a week pays a lower real hourly rate than the headline suggests.
- Compare benefits separately: health insurance, retirement contributions and paid leave have monetary value but are not part of this calculation.
- Remember that these figures are gross, before income tax, social security and other deductions.
Monthly versus biweekly pay
Dividing annual pay by 12 gives monthly income, but employers paying every two weeks issue 26 paychecks a year, not 24. Each biweekly cheque is annual ÷ 26, and two months a year contain three pay dates. The biweekly figure in the results uses the weeks you entered, so it matches a 52-week year when you leave the default.
Limits
Results are before tax and ignore bonuses, overtime premiums, and unpaid leave you did not enter. Currency symbols only change how numbers are displayed. No data leaves your browser.