How to use this calculator
- Type your Pay and choose the period in Paid per: hour, day, week, two weeks, month or year.
- Set Hours per week and Days per week to match your real schedule.
- Lower Paid weeks per year below 52 if you take unpaid leave or work seasonally.
- Read Yearly pay and Hourly pay, then scan the table for day, week, two-week and month figures.
How hourly pay converts to a salary
Annual pay is the pay for one period multiplied by how many of those periods you work in a year. For an hourly rate that means hours per week times paid weeks. Going the other way, a yearly salary is divided by total working hours to get an hourly equivalent.
Yearly pay = Rate × Hours per week × Paid weeks- Rate = pay per hour (for daily pay, replace hours with days per week)
- Hours per week = your typical paid hours
- Paid weeks = weeks per year that you are paid, up to 52
- Hourly equivalent = Yearly pay ÷ (Hours per week × Paid weeks)
Example: $28 an hour
At $28 an hour, 40 hours a week and 52 paid weeks, the calculator shows $58,240 a year, $4,853.33 a month and $1,120 a week.
Now assume two weeks of unpaid time off, so 50 paid weeks. The same $28 rate yields $56,000 a year, or $4,666.67 a month. That $2,240 difference is why the paid-weeks field matters, especially for contractors, teachers on 10-month contracts or seasonal workers.
Going the other way: salary to hourly
Choose Year under Paid per to find the hourly value of a salary. A $62,000 salary with a 37.5-hour week and 52 weeks equals $31.79 an hour, or about $1,192.31 a week. If the job regularly demands 45 hours, change the field to 45 and the real hourly rate falls to roughly $26.50.
This is the honest way to compare a salaried offer with an hourly one: divide by the hours you will really work, not the hours in the contract.
How to use the result
Use the yearly figure to compare job offers, and the monthly figure to match against rent and bills. Remember that all outputs are before tax. To plan spending from the money you actually receive, put your net monthly pay into the 50/30/20 budget calculator, and check how much of it your debts take with the debt-to-income calculator.
When you negotiate, compare total compensation too: paid leave, employer retirement contributions and health coverage can outweigh a small difference in the hourly rate.
Common mistakes
Assuming 52 paid weeks when your contract has none for holidays, or using 2,080 hours (40 × 52) for a job that is part time, are the two classic errors. Another is forgetting that overtime, bonuses and tips are not included unless you add them to the pay or hours.
For biweekly paychecks, remember there are 26 per year, not 24, so two months a year contain three paychecks.
Assumptions and limits
The calculator applies a flat rate to every hour and ignores taxes, overtime premiums, unpaid breaks and benefits. Overtime rules differ by country and employment type, so check your contract or local labor authority. Monthly pay is simply one twelfth of the yearly amount.
Frequently asked questions
How many working hours are in a year?
At 40 hours a week for 52 weeks it is 2,080 hours. Fewer paid weeks or hours reduce that, and the calculator lets you change both.
How do I convert $25 an hour to a yearly salary?
Multiply $25 by your weekly hours and paid weeks. With 40 hours and 52 weeks that gives $52,000 a year.
Is the result before or after tax?
Before tax. Income tax, payroll deductions and benefit contributions reduce the amount you take home.
Why is my monthly pay not four times my weekly pay?
A year has about 4.33 weeks per month, not 4. Monthly pay here is the yearly amount divided by 12.
Does the calculator include overtime?
No. To include it, add your typical overtime hours to Hours per week or add the extra pay into the yearly total.