Salary Calculator
Convert any pay amount between hourly, daily, weekly, biweekly, monthly, and annual figures based on your hours per week and weeks worked per year.
$
Enter your values above to see the results.
Tips & Notes
- ✓When comparing a salaried position to an hourly or contract role, factor in paid time off — a salaried employee earning 2 weeks of paid vacation receives that value in addition to the stated salary.
- ✓The quick hourly-to-annual conversion for 40-hour full-time workers: multiply the hourly rate by 2,000 (40 hours x 50 weeks, excluding 2 weeks) or 2,080 (40 hours x 52 weeks).
- ✓Contractors and freelancers should add 15-30% to any equivalent salaried rate to compensate for self-employment tax, health insurance, retirement funding, and no paid time off.
- ✓Monthly salary does not equal annual divided by 12 exactly when paid biweekly — biweekly employees receive 26 paychecks, meaning the monthly equivalent is annual divided by 12, not biweekly times 2.
- ✓Minimum wage workers at $7.25/hour (federal minimum) earn approximately $15,080 annually at full-time hours — the federal poverty level for a single person is approximately $14,580 in 2024.
- ✓When negotiating salary, calculate the hourly equivalent to understand the true value of additional vacation days — each extra day of paid time off on a $75,000 salary is worth approximately $288.
Common Mistakes
- ✗Using 52 weeks for annual salary calculations when the employee takes unpaid leave — contractors and part-time workers must adjust weeks worked to get an accurate annual figure.
- ✗Comparing a salaried offer to an hourly offer without adjusting for benefits — a salaried position with health insurance and paid time off is worth considerably more than the base salary comparison shows.
- ✗Calculating monthly pay as biweekly times 2 — biweekly pay produces 26 checks per year (13 per half year), meaning some months have 3 paychecks, not 2.
- ✗Not accounting for overtime premium when calculating hourly worker annual income — hourly workers who regularly receive overtime earn more than straight-time calculations suggest.
- ✗Forgetting self-employment tax when converting salaried to contractor rates — self-employed individuals pay both the employee and employer FICA shares (15.3%), adding approximately 7.65% to the cost compared to W-2 employment.
- ✗Assuming salary figures include all compensation — total compensation includes retirement match, health insurance, bonuses, equity, and other benefits that can add 20-40% to the base salary figure.
Salary Calculator Overview
A salary calculator converts any compensation figure into all standard pay period equivalents, making it easy to compare job offers quoted in different formats, calculate hourly rates from annual salaries, or understand what an hourly wage translates to annually.
The calculation is straightforward but frequently done incorrectly — particularly when accounting for actual weeks worked versus a 52-week assumption.
What each field means:
- Amount — the known compensation figure in any pay period format
- Pay Period — the format your amount is in: hourly, daily, weekly, biweekly, monthly, or annual
- Hours per Week — standard work hours; typically 40 for full-time, variable for part-time
- Weeks per Year — actual weeks worked; 52 for full-year, less for contractors or seasonal workers who take unpaid time off
What your results mean:
- Annual — total yearly compensation based on your hours and weeks
- Monthly — annual divided by 12; for budgeting against monthly expenses
- Biweekly — annual divided by 26; the most common paycheck frequency
- Weekly — annual divided by weeks per year
- Daily — annual divided by (weeks x days per week)
- Hourly — annual divided by (weeks x hours per week); useful for comparing salaried to hourly offers
Example — $28/hour, 40 hours/week, 52 weeks:
Hourly: $28.00 Daily (8hr day): $224 Weekly: $1,120 Biweekly: $2,240 Monthly: $4,853 Annual: $58,240 Note: $28/hour x 2,080 hours worked = $58,240 For comparison: a $60,000 salary = $28.85/hour at 40hrs/52wks
EX: Comparing job offers quoted in different formats Offer A: $65,000 annual salary Offer B: $32/hour (assuming 40hrs/52wks = $66,560 annual) Offer C: $5,500/month (= $66,000 annual) Ranked by annual gross: B ($66,560) > C ($66,000) > A ($65,000) But if Offer A includes 4 weeks paid vacation and B is contract with no benefits: real comparison changes significantly
Annual salary equivalents by hourly rate — 40 hours, 52 weeks:
| Hourly Rate | Annual Salary | Monthly | Biweekly |
|---|---|---|---|
| $15/hour | $31,200 | $2,600 | $1,200 |
| $25/hour | $52,000 | $4,333 | $2,000 |
| $40/hour | $83,200 | $6,933 | $3,200 |
| $75/hour | $156,000 | $13,000 | $6,000 |
Common salary benchmarks converted:
| Annual Salary | Hourly (40hr/52wk) | Monthly | Biweekly |
|---|---|---|---|
| $40,000 | $19.23 | $3,333 | $1,538 |
| $75,000 | $36.06 | $6,250 | $2,885 |
| $100,000 | $48.08 | $8,333 | $3,846 |
| $150,000 | $72.12 | $12,500 | $5,769 |
Contractors and freelancers quoting hourly rates must account for weeks not worked (vacation, sick leave, holidays) that salaried employees receive paid. A salaried employee earning $75,000 receives full compensation through 2-4 weeks of paid time off. A contractor billing $36/hour must charge enough to cover their own unpaid time off — if they take 4 weeks off, they work only 48 weeks and need $36.06 to match the salaried income, or $39.06 to additionally cover the equivalent benefits cost.
Frequently Asked Questions
For a standard full-time employee: Annual salary = Hourly rate x Hours per week x Weeks per year. At 40 hours per week for 52 weeks: Annual = Hourly x 2,080. A $25/hour rate equals $52,000 annually. A quick approximation: double the hourly rate and add three zeros ($25 x 2 = 50, add 000 = $50,000, close to the exact $52,000). For part-time or contract workers, adjust for actual hours and weeks worked. A 30-hour part-time worker at $25/hour works 1,560 hours annually and earns $39,000.
At 40 hours per week for 52 weeks (2,080 hours): $100,000 / 2,080 = $48.08 per hour. At 40 hours per week for 50 weeks (excluding 2 weeks vacation, 2,000 hours): $100,000 / 2,000 = $50.00 per hour. The $50/hour approximation is commonly used because it is easier to remember. For context, $100,000 annually is approximately $8,333/month or $3,846 biweekly. After taxes (22% federal plus 5% state plus FICA), the take-home is roughly $65,000-$72,000 annually depending on location and deductions.
A salaried employee receives a fixed annual compensation divided into regular paychecks, regardless of exact hours worked in any given period. Salaried employees are typically exempt from overtime regulations. An hourly employee is paid per hour worked and is entitled to 1.5x the regular rate for hours exceeding 40 per week under the Fair Labor Standards Act. Salaried positions typically offer more stability, benefits, and career advancement opportunities. Hourly positions offer more direct compensation for time worked and overtime potential. Some high-earning hourly workers (skilled tradespeople, healthcare professionals) earn more than many salaried employees.
Start with your target annual income, then add the costs of self-employment. Formula: Freelance rate = (Target annual income + Business expenses + Benefits cost) / Billable hours per year. If you want $80,000 in take-home income, add 15.3% for self-employment tax ($12,240), $7,000 for health insurance, $500 for retirement plan fees, and $5,000 for other business expenses — totaling approximately $104,740 needed before tax. Divide by 1,500 realistic billable hours (accounting for sales, admin, vacation, and non-billable time): $104,740 / 1,500 = $69.83/hour. Add a profit margin and market check to arrive at the final rate.
Paid vacation, sick leave, and holidays are compensation — they allow you to take time away without loss of income. To calculate the dollar value: Annual salary / Working days per year x PTO days. A $75,000 salary with 260 working days annually values each day at $288. Twenty days of PTO is worth $5,760 in compensation beyond the base salary. When comparing a job with 15 days PTO to one with 25 days, the 10-day difference is worth approximately $2,885 on a $75,000 salary — a meaningful factor in total compensation comparison.
Work backward from target take-home pay. Identify monthly fixed costs (housing, transportation, food, utilities, minimum debt payments, insurance) and desired discretionary spending. Add 20% for taxes, retirement savings, and emergency fund. Housing alone should not exceed 30% of gross income (25% is more conservative). A useful benchmark: housing costs x 3 to estimate minimum needed gross income. If rent or mortgage is $2,000/month, aim for at least $6,000/month gross ($72,000/year). Factor in student loans, car payments, and other fixed obligations that reduce available housing budget below the 30% threshold.