The conversion formulas
Annual salary = hourly rate × hours per week × weeks per year
Hourly rate = annual salary ÷ (hours per week × weeks per year)
Hourly rate = annual salary ÷ (hours per week × weeks per year)
A full-time schedule is usually 40 hours a week for 52 weeks, which is 2,080 paid hours a year. At $25 an hour that is $52,000 a year, $4,333 a month, $2,000 every two weeks and $1,000 a week.
Adjusting for unpaid time off
If you get paid vacation and holidays, use 52 weeks. If some of your time off is unpaid, reduce the weeks per year to see a more realistic annual figure: 50 weeks at $25 an hour and 40 hours a week gives $50,000. The same adjustment matters when comparing an hourly job with a salaried one.
Comparing hourly and salaried offers
- Look beyond the pay rate. Health insurance, retirement matching, paid leave and bonuses can be worth thousands of dollars a year.
- Check the real hours. A salaried job that expects 45 hours a week pays less per hour than the same salary over 40 hours. Enter the real hours to compare fairly.
- Overtime. Many hourly roles pay extra for overtime, which this calculator does not include.
Gross versus take-home pay
All results here are before income tax, payroll taxes and deductions such as insurance or retirement contributions. Your take-home pay will be lower, and how much lower depends on where you live and your circumstances.