How It Works
Annual salary = hourly rate × hours per week × weeks worked per year.
Annual = Hourly × Hours/Week × Weeks/Year | Monthly = Annual ÷ 12 | Biweekly = Annual ÷ 26
- Monthly pay = annual ÷ 12 (based on calendar months, not pay periods).
- Biweekly = annual ÷ 26 (there are 26 biweekly periods in a year).
- Daily pay assumes a standard 5-day workweek.
Worked Example
$25/hour, 40 hours/week, 52 weeks/year.
$25/hour works out to $52,000/year before taxes — a comfortable middle-class income in most US markets.
Hourly to Salary: Getting the Annual Number Right
Rate times hours times weeks
The core conversion is simple: annual pay is your hourly rate times hours per week times weeks worked per year. From that the tool derives the equivalents you actually get paid in — weekly (rate × hours), biweekly (the annual total ÷ 26, since there are 26 two-week periods), and monthly (annual ÷ 12).
A small subtlety: monthly pay is the annual total divided by 12 calendar months, which is slightly more than two biweekly cheques — the reason biweekly pay produces three-paycheque months twice a year.
The weeks number is where people slip
The most common error is using 52 weeks when you actually take unpaid time off. If two of your weeks are unpaid, enter 50 so the annual figure reflects what you really earn — using 52 quietly overstates the salary by the value of that time off.
If your hours swing week to week, run the calculator twice — once for a typical week and once for a slow one — to see a realistic range rather than a single optimistic number.
These are gross figures, not take-home
Every number here is gross pay, before income tax, FICA, and any deductions. That is exactly what you want for comparing against a posted job listing, since listings almost always quote gross salary too — so compare the annual figure to the advertised one.
But do not budget your spending against it. Your take-home will be meaningfully lower; pair this with a paycheck calculator to see what actually lands in your account.
Comparing an hourly job to a salaried one
When weighing an hourly role against a salaried offer, line up the annual gross figures first — then look past pay. Benefits, paid time off, and overtime eligibility often change the real value of a job more than the rate itself.
Overtime in particular can favour an hourly role: salaried workers frequently are not paid for extra hours, while eligible hourly workers earn a premium for them, which a straight-rate comparison misses entirely.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.