In this guide
Job offers arrive as hourly rates or yearly salaries, and comparing them means converting one into the other. The math is simple, but the assumptions behind it decide whether the answer is realistic.
The basic formula
Annual pay = hourly rate × hours per week × weeks per year. For a standard full-time job that is 40 hours × 52 weeks = 2,080 hours a year. At $25 an hour: 25 × 2,080 = $52,000.
| Hourly rate | Yearly (2,080 hours) | Monthly |
|---|---|---|
| $15 | $31,200 | $2,600 |
| $20 | $41,600 | $3,467 |
| $25 | $52,000 | $4,333 |
| $30 | $62,400 | $5,200 |
| $40 | $83,200 | $6,933 |
| $50 | $104,000 | $8,667 |
Salary to hourly
Reverse the formula by dividing by 2,080. A $65,000 salary works out to 65,000 ÷ 2,080 = $31.25 an hour.
Adjusting for real life
- Unpaid time off: if you take two unpaid weeks, use 50 weeks, or 2,000 hours. $25 an hour then gives $50,000.
- Part-time: replace 40 with your weekly hours. At 30 hours a week, $25 an hour is 25 × 30 × 52 = $39,000.
- Pay periods: paid every two weeks means 26 paychecks a year, each worth one 26th of the annual pay.
Overtime
In the United States, federal law generally requires overtime pay of at least one and a half times the regular rate for hours over 40 in a week for non-exempt employees. State rules vary, so overtime should be estimated separately from base pay.
Gross versus take-home
These figures are before tax and deductions. Take-home pay depends on your tax bracket, location, retirement contributions and benefits, so use them for comparing offers rather than planning a budget.
Comparing hourly and salaried offers
A salaried role often includes paid holidays, sick leave and employer benefits, while an hourly contractor typically pays their own self-employment taxes and gets no paid leave. That is why a contract rate usually needs to be higher than the equivalent salary to leave you in the same position.
Check your own numbers
Use the calculator with your real hours and weeks, and try the raise calculator to see how a percentage increase changes each figure.
Try the calculators
- Hourly to Salary Calculator: Convert hourly, weekly or yearly pay
- Salary Raise Calculator: New pay and percentage raise
- Hours of Work Calculator: Hours of work to afford anything
General information only, not professional advice. See our editorial policy.