One wage, five ways to read it
Job ads quote an hourly rate, an offer letter shows an annual salary, rent is due monthly and payroll arrives every other Friday. This calculator converts one figure into all the others so you can compare apples with apples, in either direction.
The formulas
- Annual pay = hourly rate × hours per week × paid weeks per year
- Hourly rate = annual salary ÷ (hours per week × paid weeks per year)
- Monthly pay = annual ÷ 12, biweekly paycheck = annual ÷ 26, weekly pay = hourly × hours.
The standard full-time year is 40 hours × 52 weeks = 2,080 hours, which is why a quick rule of thumb says “double the hourly rate and add three zeros”: $25 an hour ≈ $50,000 a year.
Worked example: $25 an hour
At 40 hours a week with paid holidays and vacation (52 paid weeks):
- Weekly: 25 × 40 = $1,000.
- Annual: 1,000 × 52 = $52,000.
- Monthly: 52,000 ÷ 12 = $4,333.33.
- Biweekly paycheck: 52,000 ÷ 26 = $2,000.
If two weeks of vacation are unpaid, set paid weeks to 50: annual pay drops to $50,000.
Going the other way, a $65,000 salary at 40 hours and 52 weeks is worth 65,000 ÷ 2,080 = $31.25 an hour.
How hours change the picture
| Hours per week | Weekly pay at $25/h | Annual pay |
|---|---|---|
| 20 | $500 | $26,000 |
| 30 | $750 | $39,000 |
| 35 | $875 | $45,500 |
| 40 | $1,000 | $52,000 |
| 45 | $1,125 | $58,500 |
| 50 | $1,250 | $65,000 |
For hourly, non-exempt workers, hours above 40 a week are normally paid at time and a half, so the last two rows understate real pay. Use the overtime calculator for those weeks.
Salaried vs hourly: what the rate hides
A salaried employee who regularly works 50 hours earns less per hour than the headline suggests: $65,000 over 50 × 52 = 2,600 hours is $25 an hour, not $31.25. Enter your real weekly hours in salary mode to see your true hourly value.
Also keep in mind what the number leaves out: employer health insurance, 401(k) match, bonuses and paid time off can add 20–30% to the value of a job. Contractors paid on a 1099 should aim for a noticeably higher hourly rate than employees, because they pay both halves of FICA (15.3% self-employment tax) and fund their own benefits.
Minimum wage check
The calculator flags rates below the federal minimum of $7.25 and below $15, a level many states and cities have already passed. Your local minimum may be higher than both, so check your state labor department’s website.