How the Conversion Works
Hourly × 2,080 = Annual (52 weeks × 40 hrs). Monthly = Annual ÷ 12. Biweekly = Annual ÷ 26. Weekly = Annual ÷ 52. These are pre-tax gross figures; your take-home pay depends on your effective tax rate, benefits deductions, and retirement contributions.
Why Hourly and Annual Rates Diverge
Salaried employees typically receive 10–11 paid federal holidays plus vacation, so their effective hourly rate is higher than the straight division suggests. Hourly workers paid only for hours worked face more income variability. A $70,000 salary with three weeks PTO works out to roughly $35.58/hr for actual working hours; without any PTO the same salary yields $33.65/hr.
Overtime and Benefits Adjustments
FLSA-covered hourly workers earn 1.5× pay for hours over 40 per week. Benefits (health insurance, 401k match, dental, vision) are worth roughly 30–40% of base salary in total compensation. A $25/hr position without benefits may pay less in total than a $40,000 salaried role that includes a full benefits package.
Frequently Asked Questions
Does this include taxes?
No. This tool converts gross (pre-tax) salary between hourly, daily, weekly, monthly, and annual figures. Federal and state income taxes, Social Security (6.2%), and Medicare (1.45%) reduce your take-home pay. Use a paycheck calculator to estimate net income after withholdings.
Why use 2,080 hours per year?
2,080 hours comes from 40 hours per week × 52 weeks. This is the standard full-time work year used in U.S. compensation benchmarking. It doesn't account for vacation, holidays, or sick days — those reduce actual working hours but are still included in a salaried employee's total annual compensation.
I work 35 hours a week. How do I convert?
Enter 35 in the custom hours field. Your annual equivalent becomes 35 × 52 = 1,820 hours. An hourly rate of $20 at 35 hours equals $36,400/year — compared to $41,600 that the same $20/hr at 40 hours produces. This 12% difference matters significantly when comparing job offers.
How do I account for benefits when comparing offers?
Assign a dollar value to each benefit: employer health insurance typically adds $6,000–$15,000/year; a 401(k) match of 4% on a $50,000 salary adds $2,000. Add these amounts to base salary before comparing. A $55,000 offer with full benefits often exceeds the total value of a $65,000 offer with none.