Salary Calculator

Salary conversion breaks an annual salary down into equivalent hourly, daily, weekly, biweekly and monthly rates, and back again. Useful for comparing two job offers on equal terms, working out what overtime is really worth, or deciding whether a job is worth doing yourself.

Annual to hourly: Hourly Rate = Annual Salary ÷ (Hours per Week × Weeks per Year)

Standard assumption: 40 hours/week × 52 weeks = 2,080 hours/year

If you take 2 weeks unpaid vacation: 40 × 50 = 2,000 working hours/year

Annual to daily: Daily Rate = Annual Salary ÷ Working Days per Year

Standard: 52 weeks × 5 days = 260 working days/year Subtract public holidays (~10 in the US) and vacation days for a more accurate figure.

Annual to weekly: Weekly Rate = Annual Salary ÷ 52

Annual to monthly: Monthly Rate = Annual Salary ÷ 12

Hourly to annual (with overtime consideration): Annual = (Regular Hours × Regular Rate) + (Overtime Hours × Overtime Rate)

Standard US overtime rate = 1.5× regular rate for hours over 40/week.

Quick mental math shortcut: Divide annual salary by 2,000 and drop the last three zeros: $60,000 ÷ 2,000 = $30.00/hour (close enough for estimates)

Net vs. gross: Salary figures are always gross (before tax). Your take-home (net) depends on:

• Federal income tax (US: 10–37% marginal rates)
• State income tax (0% in TX, FL, NV; up to 13.3% in CA)
• FICA: Social Security 6.2% + Medicare 1.45% = 7.65% total
• Health insurance premiums, 401(k) contributions

Effective take-home: typically 65–80% of gross salary.

Worked example: Annual salary: $78,000, paid for standard 40-hour weeks.

• Working hours: 40 × 52 = 2,080 hours/year
• Hourly rate: $78,000 ÷ 2,080 = $37.50/hour
• Working days: 52 × 5 = 260 days/year
• Daily rate: $78,000 ÷ 260 = $300.00/day
• Weekly rate: $78,000 ÷ 52 = $1,500.00/week
• Biweekly rate: $78,000 ÷ 26 = $3,000.00
• Monthly rate: $78,000 ÷ 12 = $6,500.00/month

The calculator uses the full 2,080 hours and 260 days, which is what payroll departments use. If you take two weeks unpaid, your real hours are 2,000 and the same salary comes out at $39.00/hour instead, a difference of $1.50 an hour that nobody puts on the offer letter. To enter your own hours and weeks, use the salary to hourly calculator.