How the conversion works
Annual pay is hourly rate × hours per week × weeks worked. This page also adds overtime, which is paid at a multiple of your normal rate for hours beyond your regular schedule, and it lets you remove unpaid weeks. From the annual figure the calculator divides by 12 for monthly, 24 for twice-a-month, 26 for every-two-weeks and 52 for weekly pay.
The formulas, and what every variable means
annual pay = rate × regular hours × paid weeks + rate × multiplier × overtime hours × paid weeks
hourly rate from a salary = annual salary ÷ (hours per week × weeks per year)
| Term | Meaning |
|---|---|
| Rate | Your gross (pre-tax) pay for one hour of regular work |
| Regular hours | Hours you normally work in a week, usually 40 for full time |
| Paid weeks | Weeks per year minus any unpaid weeks off. A full year is 52. |
| Overtime hours | Hours beyond your regular week that are paid at a higher multiple |
| Multiplier | 1.5 for time and a half, 2 for double time |
| Hours per year | Hours per week × weeks per year (40 × 52 = 2,080 for full time) |
Worked example 1, by hand: $25 an hour, full time
- Weekly pay: $25 × 40 hours = $1,000.
- Annual pay: $1,000 × 52 weeks = $52,000.
- Monthly: $52,000 ÷ 12 = $4,333.33.
- Twice a month: $52,000 ÷ 24 = $2,166.67.
- Every two weeks: $52,000 ÷ 26 = $2,000.00.
All of these are gross. Take-home pay after tax is lower. Use the paycheck calculator for that.
Worked example 2: overtime and unpaid time off
A worker earns $22 an hour, works 40 regular hours plus 8 overtime hours a week at 1.5×, and takes 2 unpaid weeks off, so they are paid for 50 weeks.
| Item | Calculation | Per year |
|---|---|---|
| Regular pay | $22 × 40 × 50 | $44,000 |
| Overtime pay | $22 × 1.5 × 8 × 50 | $13,200 |
| Total | $57,200 |
Overtime adds $13,200, which is 23% of the total. Without the 8 overtime hours the same worker would earn $44,000. Overtime pay is not always steady, so be careful about planning a budget around it.
Worked example 3: what your salary is really worth per hour
A $75,000 salary looks like $36.06 an hour on a 40-hour week. If the job regularly takes more hours, the effective rate falls, because the salary does not increase.
| Hours worked per week | Effective hourly rate |
|---|---|
| 40 | $36.06 |
| 45 | $32.05 |
| 50 | $28.85 |
| 55 | $26.22 |
At 50 hours a week the same salary pays $28.85 an hour. That is $7.21 less than the 40-hour figure, which is worth knowing before you accept a salaried job that expects long weeks.
Worked example 4: an hourly offer or a salaried offer?
Offer A pays $28 an hour for 40 hours, with 2 unpaid weeks off a year and no benefits. Offer B is a $54,000 salary with paid time off and health insurance. To compare, we assume the employer-paid insurance is worth $5,000 a year. That assumption is only an illustration, so replace it with the real figure from the offer.
| Offer A (hourly) | Offer B (salary) | |
|---|---|---|
| Base pay | $56,000 | $54,000 |
| Employer-paid insurance (assumed) | $0 | $5,000 |
| Total value | $56,000 | $59,000 |
The salaried offer looks lower on base pay, $2,000 less, but comes out $3,000 ahead once benefits are counted. Always compare total compensation, and compare take-home pay with the paycheck calculator.
Common hourly wages as annual pay
Full time at 40 hours a week for 52 weeks (2,080 hours), before tax. For every wage from $10 to $75 an hour, and every salary from $25,000 to $150,000, see our hourly wage to salary chart:
| Hourly rate | Annual | Monthly |
|---|---|---|
| $15 | $31,200 | $2,600 |
| $20 | $41,600 | $3,467 |
| $25 | $52,000 | $4,333 |
| $30 | $62,400 | $5,200 |
| $40 | $83,200 | $6,933 |
| $50 | $104,000 | $8,667 |
Hourly versus salaried: what to compare
- Benefits. Health insurance, paid time off and retirement matching can be worth thousands of dollars a year.
- Overtime. Many salaried roles are exempt from overtime, so long weeks lower the true hourly rate.
- Take-home pay. Compare offers after tax with the paycheck calculator.
Common mistakes to avoid
- Counting unpaid weeks as paid. Enter them in the box for unpaid weeks off.
- Forgetting that all results are pre-tax. The number you can spend is lower.
- Planning around overtime you might not get. Budget on regular pay and treat overtime as a bonus.
- Comparing an hourly rate to a salary without benefits. Include benefits and time off, as in example 4.
Sources and review
The conversions are simple arithmetic, tested against known values. Time and a half for hours over 40 in a workweek is the federal rule in the Fair Labor Standards Act, 29 U.S.C. § 207. Some states and some jobs have different rules. Last reviewed September 2026. Read about our methodology.