The conversion formula
Hourly and salary pay are two ways of describing the same thing: how much you are paid for the hours in a year.
- Annual salary = hourly rate × paid hours per week × paid weeks per year
- Hourly rate = annual salary ÷ (paid hours per week × paid weeks per year)
A full-time schedule of 40 hours for 52 weeks is 2,080 hours. That number is a handy shortcut: double the hourly rate and add three zeros for a rough salary ($25 an hour ≈ $50,000; the exact figure is $52,000). In reverse, divide the salary by 2,080.
Common hourly rates as salaries (40 hours, 52 weeks)
Take-home figures are our 2026 estimate for a single filer with no state income tax and no pre-tax deductions, from the same engine as the calculator.
| Hourly | Annual gross | Monthly gross | Biweekly gross | Est. take-home per year |
|---|---|---|---|---|
| $15.00 | $31,200 | $2,600.00 | $1,200.00 | $27,249 |
| $20.00 | $41,600 | $3,466.67 | $1,600.00 | $35,606 |
| $25.00 | $52,000 | $4,333.33 | $2,000.00 | $43,962 |
| $30.00 | $62,400 | $5,200.00 | $2,400.00 | $52,318 |
| $40.00 | $83,200 | $6,933.33 | $3,200.00 | $67,361 |
| $50.00 | $104,000 | $8,666.67 | $4,000.00 | $81,994 |
Gross vs take-home
The gross column is what your employer pays before anything is taken out. The take-home column subtracts estimated federal income tax, Social Security, Medicare and — if you choose a state — state income and payroll taxes, spread evenly across the year. It does not subtract 401(k) or health insurance deductions; use the paycheck calculator for those.
The take-home share is not constant: as pay rises, more income falls in higher federal brackets, so each extra dollar per hour is worth a little less after tax than the one before. Social Security works the other way at very high pay — it stops at the annual wage base.
When hourly and salary aren’t equivalent
Overtime
Most hourly workers are “non-exempt” under the Fair Labor Standards Act and earn at least 1.5× their regular rate for hours over 40 in a week. Many salaried workers are exempt and earn no overtime. If a salaried job routinely needs 50-hour weeks, its true hourly rate is the salary divided by 50 × 52 hours, not 40 × 52.
Unpaid time
Hourly workers are often unpaid for holidays, sick days or slow weeks. If you expect 2 unpaid weeks, set paid weeks to 50: at $25 an hour, that is $50,000 instead of $52,000.
Benefits
Salaried roles more often include paid leave, health insurance and retirement matches. When comparing offers, add the value of benefits to the salary side, or compare total compensation.
Part-time and compressed schedules
The formula works for any schedule — just change paid hours per week. At $20 an hour for 52 weeks:
| Hours per week | Paid hours per year | Annual gross | Monthly gross |
|---|---|---|---|
| 20 | 1,040 | $20,800 | $1,733.33 |
| 25 | 1,300 | $26,000 | $2,166.67 |
| 30 | 1,560 | $31,200 | $2,600.00 |
| 32 | 1,664 | $33,280 | $2,773.33 |
| 37.5 | 1,950 | $39,000 | $3,250.00 |
| 40 | 2,080 | $41,600 | $3,466.67 |
A four-day, 10-hour schedule is still 40 hours a week, so the conversion doesn’t change — though overtime rules can differ under some state laws.
Monthly vs per-paycheck amounts
Months aren’t equal to four weeks. A year has 52 weeks but 12 months, so a month averages 4.33 weeks. That is why biweekly pay (26 paychecks) gives you two months a year with three paychecks, while semimonthly pay (24 paychecks) pays slightly more each time but never three times in a month. The table above shows both.
Worked example: salary to hourly
A $65,000 salary at 40 hours a week, 52 weeks a year: $65,000 ÷ 2,080 = $31.25 an hour, $1,250 a week, $2,500 biweekly and $5,416.67 a month. At 45 hours a week the same salary works out to $65,000 ÷ 2,340 = $27.78 an hour. Switch the calculator to “Salary → hourly” to see these with take-home estimates for your state.
Per-day figures assume 8-hour days. Estimates only — your employer’s payroll, benefits and W-4 determine the actual amounts.