Salary Calculator: Hourly to Yearly

Hourly to salary, and back

A yearly salary is the hourly rate × hours per week × paid weeks per year. At 40 hours and 52 weeks that is 2,080 hours, so $20 an hour is $41,600 a year and $60,000 a year is $28.85 an hour. Change the hours or weeks to match your contract: 37.5-hour weeks, or 50 weeks if two are unpaid, shift every number on the page.

Pay periods explained

Weekly pay is the annual figure ÷ 52. Biweekly (every two weeks) is ÷ 26 and semi-monthly (twice a month, e.g. the 15th and last day) is ÷ 24, which is why those two cheques differ even for the same salary. Monthly is ÷ 12. Daily uses your working days per week.

Gross, not take-home

Every figure here is gross pay before income tax, social security or national insurance, retirement contributions and health premiums. Take-home is typically 65–80% of gross depending on the country and your bracket. Use it for comparing offers and setting an hourly rate, then apply your local tax rules.

Freelance and contract rates

Converting a salary into a freelance hourly rate needs more than dividing by 2,080: you lose paid leave, employer benefits and have unbillable hours. A common rule is to set weeks per year to 46–48 and hours per week to your billable hours (often 25–30) to find the rate that matches a salaried job.