How do I convert salary to hourly?
Divide your annual salary by the number of working hours in a year. The standard is 2,080 hours (52 weeks × 40 hours). Example: $60,000 ÷ 2,080 = $28.85/hour. If you work 45 hours/week: $60,000 ÷ (52 × 45) = $25.64/hour.
What is the 2,080-hour standard working year?
2,080 = 52 weeks × 40 hours/week. It is the US standard for full-time salaried employees and is used by most payroll systems and job offers to convert between annual and hourly rates. It does not account for PTO or holidays.
How does PTO affect my true hourly rate?
If you have 10 days of PTO, your actual working hours are 2,080 − (10 × 8) = 2,000 hours. Your effective hourly rate = salary ÷ 2,000. PTO matters when comparing offers: a $65,000 job with 20 PTO days pays a higher effective rate than a $67,000 job with only 5 days off.
Is salary to hourly the same as hourly to salary?
Yes, it is the same formula reversed. Hourly to annual: rate × 2,080. Annual to hourly: salary ÷ 2,080. This calculator handles both directions.
How do I convert a bi-weekly paycheck to annual salary?
Multiply the gross bi-weekly amount by 26 (there are 26 bi-weekly pay periods in a year). Example: $2,500 bi-weekly × 26 = $65,000 annual. For semi-monthly (24 pay periods/year): multiply by 24.
Does this account for overtime?
No — the base calculator assumes regular hours at a fixed rate. Overtime pay is typically 1.5× the regular rate for hours over 40/week under US FLSA. Use the separate overtime calculator to model blended effective rates when you regularly work overtime.
What if I am paid semi-monthly vs. bi-weekly?
Semi-monthly = 24 pay periods/year (1st and 15th, or 15th and last day). Bi-weekly = 26 pay periods/year. Semi-monthly checks are larger but you get 2 fewer checks per year. Annual salary is the same either way.
How is my hourly equivalent different from my contractor rate?
As a W-2 employee, your employer pays ~7.65% payroll taxes and typically covers benefits. As a 1099 contractor, you pay both sides of payroll tax (~15.3% self-employment tax) plus your own benefits. To match employee compensation, multiply your employee hourly equivalent by at least 1.25–1.4 when quoting a contractor rate.
Is this calculator pre-tax or post-tax?
Pre-tax (gross) only. Federal income tax, state income tax, FICA (Social Security + Medicare), health insurance premiums, and 401k contributions all reduce your take-home pay significantly. Use a paycheck calculator or consult a payroll service for net pay estimates.
How do I compare two job offers with different salaries and hours?
Enter each offer's salary and weekly hours separately to get the effective hourly rate, then factor in PTO days. A job paying $70,000 for 45 hours/week has an hourly equivalent of $29.91, while $65,000 at 40 hours is $31.25 — the 'lower' offer actually pays more per hour.