Convert between annual salary and hourly rate instantly. See your daily, weekly, monthly, and biweekly paycheck breakdown.
How to Convert Salary to Hourly Rate
Converting between salary and hourly pay is essential when comparing job offers, evaluating part-time vs full-time work, or understanding what your time is actually worth. The conversion depends on how many hours you work per week and how many weeks per year.
Hourly Rate = Annual Salary / (Hours per Week x Weeks per Year)
Example: $65,000 / (40 x 52) = $65,000 / 2,080 = $31.25/hr
To convert hourly to annual salary, simply reverse the formula:
Annual Salary = Hourly Rate x Hours per Week x Weeks per Year
Example: $25.00 x 40 x 52 = $52,000/yr
Standard Work Hours Assumptions
Most salary-to-hourly conversions assume a standard 40-hour work week and 52 weeks per year, giving 2,080 total annual hours. However, if you get unpaid time off or work fewer weeks, adjust the weeks-per-year field accordingly. For example, 50 weeks (2 weeks unpaid vacation) gives 2,000 hours and a slightly higher effective hourly rate.
| Annual salary | 40 hrs / 52 wks | 40 hrs / 50 wks | 35 hrs / 52 wks |
|---|
| $40,000 | $19.23/hr | $20.00/hr | $21.98/hr |
| $55,000 | $26.44/hr | $27.50/hr | $30.22/hr |
| $75,000 | $36.06/hr | $37.50/hr | $41.21/hr |
| $100,000 | $48.08/hr | $50.00/hr | $54.95/hr |
Comparing Job Offers: Salary vs Hourly
When comparing a salaried position to an hourly one, remember that salaried roles often include benefits like health insurance, 401k matching, and paid time off. An hourly rate may look higher on paper, but without benefits, the total compensation could be lower. Use this converter alongside our Total Compensation Calculator to get the full picture.
Part-Time vs Full-Time Conversion
- Full-time (40 hrs/wk): 2,080 hours/year is the standard benchmark.
- Part-time (20 hrs/wk): 1,040 hours/year. A $40,000 salary equivalent at part-time would need $38.46/hr.
- Overtime consideration: Hourly workers earning overtime (1.5x after 40 hrs) can significantly out-earn their base rate equivalent.
Frequently Asked Questions
How do I convert my salary to an hourly rate?
Divide your annual salary by the total hours you work per year. For a standard 40-hour week across 52 weeks, divide by 2,080. For example, a $60,000 salary equals $28.85 per hour.
What salary is $20 an hour?
At $20 per hour working 40 hours a week for 52 weeks, your annual salary would be $41,600. Your monthly gross would be approximately $3,467 and your biweekly paycheck would be $1,600 before taxes.
Should I account for unpaid vacation when converting?
If you receive unpaid time off, reduce the weeks per year accordingly. Two weeks of unpaid vacation means 50 working weeks instead of 52, which increases your effective hourly rate. If your vacation is paid, keep 52 weeks since you're still earning during that time.
How does overtime affect the conversion?
Non-exempt hourly employees typically earn 1.5x their regular rate for hours beyond 40 per week. This means working 50 hours at $25/hr actually earns $1,000 + $375 = $1,375/week, which annualizes to $71,500 rather than the straight-time $65,000. Our calculator uses straight time; add overtime separately if applicable.
Is salary or hourly pay better?
Neither is inherently better. Salaried positions often include benefits, stability, and career growth opportunities. Hourly positions offer overtime pay, clearer work-life boundaries, and flexibility. Compare total compensation including benefits, not just the base rate.