How to convert hourly pay to a salary
Multiply your hourly wage by the hours you work in a week, then by the number of paid weeks in a year. At 40 hours a week and 52 weeks, that is 2,080 paid hours, so $25.00 an hour is $52,000 a year. A quick shortcut: double the hourly wage and add three zeros, so $20.00 an hour is about $40,000 a year (exactly $41,600) and $15.00 an hour is $31,200.
To get monthly pay, divide the yearly figure by 12, not by four weeks: $25.00 an hour is $4,333.33 a month, because most months are a little more than four weeks long. Paid every two weeks, the same wage gives 26 paychecks of $2,000.00.
How to convert a salary to an hourly wage
Switch the calculator to Salary to hourly, or divide the salary by your paid hours a year. With 2,080 hours, a $50,000 salary is $24.04 an hour, $75,000 is $36.06 and $100,000 is $48.08.
Salaried workers who regularly put in longer weeks earn less per hour than the simple figure suggests. A $60,000 salary at 50 hours a week works out to $23.08 an hour, compared with $28.85 at 40 hours. Enter your real hours to compare a salaried offer with an hourly one fairly.
Overtime, part-time hours and unpaid time off
Under the federal Fair Labor Standards Act, non-exempt employees must be paid at least one and a half times their regular rate for hours over 40 in a workweek. Add your usual weekly overtime hours and the calculator includes them: $25.00 an hour with 5 hours of overtime a week comes to $61,750 a year, of which $9,750 is overtime. Some states, such as California, also require daily overtime; the calculator uses the weekly hours you enter.
Part-time work scales the same way: $25.00 an hour for 30 hours a week is $39,000 a year. If some weeks are unpaid, lower the paid weeks: taking two unpaid weeks at $25.00 an hour reduces yearly pay to $50,000. If your vacation and holidays are paid, keep 52 weeks.
Pay periods: weekly, every two weeks, twice a month and monthly
Being paid every two weeks (biweekly) gives 26 paychecks a year, while twice a month (semimonthly, often the 15th and the last day) gives 24. The yearly pay is the same, so each semimonthly paycheck is larger: $25.00 an hour is $2,000.00 every two weeks but $2,166.67 twice a month. With biweekly pay, two months of the year contain three paydays, which is why a monthly budget built on two biweekly paychecks leaves a little extra.
Weekly pay is the yearly figure divided by 52: $1,000.00 at $25.00 an hour and 40 hours. Daily pay divides the yearly total by your working days, $200.00 for a five-day week.
Minimum wage and common hourly rates
The federal minimum wage is $7.25 an hour, which is $15,080 a year for a full-time worker. Many states and cities set a higher minimum, so check your state labor department. At $15.00 an hour, a common starting wage in many areas, full-time pay is $31,200 a year, or $2,600.00 a month before taxes.
Gross pay versus take-home pay
Every figure here is gross pay, before federal and state income tax, Social Security, Medicare and deductions such as a 401(k) or health insurance. To see what actually lands in your bank account, use the link under the results, which opens our paycheck calculator with your yearly pay filled in, then pick your state and filing status.
As a rough guide, a single worker in Texas, which has no state income tax, keeps about 86% of gross pay at $40,000 a year and about 79% at $100,000, after 2026 federal income tax, Social Security and Medicare. States with an income tax take more; the paycheck calculator shows the estimate for your state.
Comparing job offers
When you compare an hourly job with a salaried one, convert both to the same unit and use realistic hours. Also count paid time off, overtime eligibility (salaried exempt employees usually do not get overtime), and benefits such as health insurance and a 401(k) match, which can be worth thousands of dollars a year.
The conversion tables below give quick answers for common wages and salaries. All assume 40 hours a week and 52 paid weeks.