Convert your pay
Understanding Salary to Hourly Conversion
Comparing compensation packages between exempt salaried positions and non-exempt hourly roles requires converting annual compensation to an hourly equivalent rate. This tool calculates gross earnings across daily, weekly, biweekly, semi-monthly, and annual pay periods.
The Standard 2,080 Work Hours Baseline
In standard corporate accounting, a full-time work year comprises 2,080 paid hours (40 hours per week × 52 weeks per year). The base formula for converting salary to hourly wage is:
Hourly Rate = Annual Salary / (Weekly Hours × Weeks Worked)
Biweekly vs. Semi-Monthly Payroll Schedules
When evaluating job offers, pay frequency directly affects cash flow and paycheck size:
- Biweekly (26 Paychecks): Employees are paid every two weeks (e.g., every other Friday). Paycheck amounts are slightly lower, but result in two "three-paycheck months" per year.
- Semi-Monthly (24 Paychecks): Employees are paid twice per month (typically on the 1st and 15th). Paycheck amounts are slightly higher because annual salary is divided across 24 pay periods instead of 26.
Accounting for Paid Time Off and Overtime Rates
For salaried employees receiving paid time off (PTO) and paid holidays, 52 weeks remains the accurate baseline for calculating effective hourly compensation. Contractors or seasonal workers taking unpaid leave should adjust the "Weeks worked per year" parameter accordingly.
Under Fair Labor Standards Act (FLSA) regulations, non-exempt hourly workers are entitled to 1.5 times their regular base rate (time-and-a-half) for hours worked beyond 40 hours within a single workweek.
Common Annual Salary to Hourly Conversion Rates
- $40,000 / year: ~$19.23 per hour (40 hrs/wk)
- $50,000 / year: ~$24.04 per hour (40 hrs/wk)
- $60,000 / year: ~$28.85 per hour (40 hrs/wk)
- $75,000 / year: ~$36.06 per hour (40 hrs/wk)
- $100,000 / year: ~$48.08 per hour (40 hrs/wk)
Frequently asked questions
How do I convert salary to hourly pay?
Divide your annual salary by 2,080, which is 40 hours per week times 52 weeks. If you work a different schedule, multiply your hours per week by the weeks you work and divide by that number instead.
Is this hourly rate before or after tax?
It is gross pay before taxes and deductions. Use the take-home pay calculator to estimate what you keep after tax.
How is overtime calculated?
In the United States, many non-exempt employees earn at least 1.5 times their regular hourly rate for hours over 40 in a week. The calculator shows that figure for reference. Your employer, state law and contract can set different rules.
Why are semi-monthly and biweekly pay different?
Semi-monthly means 24 paychecks per year, while biweekly means 26. Biweekly checks are smaller, but you receive two extra paychecks in some months.