Hourly to Salary Calculator - Pay Rate Converter

How to use this tool

1. Choose conversion direction. Select "Hourly → Salary" to start from a wage, or "Salary → Hourly" to start from an annual figure.
2. Enter your pay rate. Type your hourly rate or annual salary in the input field.
3. Set your schedule. Adjust hours per week (default 40) and weeks per year (default 52) to match your actual work schedule.
4. Read the pay breakdown. See your equivalent pay across all common periods: hourly, daily, weekly, bi-weekly, semi-monthly, monthly, quarterly, and annually.

Hourly vs. salaried pay: what's the difference?

Hourly workers are paid for the hours they work and may qualify for overtime pay, commonly at 1.5× the regular rate for qualifying hours over 40 in a workweek under federal rules. Salaried employees receive a fixed annual amount, though salary alone does not determine whether someone is exempt from overtime protections.

Common pay periods explained

Employers use several pay schedules: weekly (52 checks/year), bi-weekly (every two weeks, 26 checks/year), semi-monthly (twice a month, 24 checks/year), and monthly (12 checks/year). Bi-weekly and semi-monthly are common in the United States. Bi-weekly pay follows a 14-day cycle, so two months in most years have three paychecks; semi-monthly pay dates stay tied to the calendar, such as the 1st and 15th.

How hours per year affect your effective rate

A standard full-time schedule is 2,080 hours (40 hours/week × 52 weeks). This calculator uses your entered weeks per year, so reducing 52 weeks to 50 models two weeks away without pay. Paid time off remains part of a 52-week paid schedule. If you want an effective hourly rate based on hours actually worked, you can also account for paid leave and holidays separately.

For example, two weeks of vacation plus ten holidays can mean roughly 49 productive weeks, or about 1,960 hours at 40 hours per week. Dividing annual salary by fewer working hours raises the effective hourly rate, even though the stated salary does not change. The schedule choices depend on whether you are comparing paid compensation or time actually worked.

Quick reference examples

These gross-pay examples use a 40-hour, 52-week schedule:

• $15/hour → $31,200/year
• $20/hour → $41,600/year
• $25/hour → $52,000/year
• $50,000/year → about $24.04/hour
• $75,000/year → about $36.06/hour

Benefits valuation

Base pay is only one part of a job offer. Health coverage, retirement matching, and paid leave can change the value of two offers with similar salaries. Employer health contributions and plan costs vary by year and family size, so compare the specific premiums and coverage you would use.

• Health insurance: employer contributions averaged about $7,000/year for single coverage and $20,000/year for family coverage in KFF's 2023 Employer Health Benefits Survey.
• 401(k) matching: a 50% match on contributions up to 6% of salary is worth up to 3% of annual pay. On a $60,000 salary, that is up to $1,800/year if you contribute enough to receive the full match.
• Paid time off: two weeks of paid leave on a $50,000 salary represents about $1,923 in salary paid during that time, though the value depends on the employer's policy.

Comparing total compensation requires looking at the actual benefit terms as well as pay. A contract role may have a higher hourly rate but no employer health contribution, retirement match, or paid leave.

Contractor vs. employee comparison

Independent contractors often need a higher billing rate to cover costs an employer may pay for employees, along with unpaid downtime between projects. The calculator shows gross pay only; it does not estimate self-employment tax, insurance costs, or the value of benefits.

• Self-employment tax: contractors generally pay both the employee and employer portions of Social Security and Medicare on net earnings from self-employment.
• No employer benefits: health insurance, retirement contributions, and paid leave may need to be funded independently.
• No paid downtime: gaps between contracts, sick days, and holidays may reduce billable hours.

A rough planning rule is to multiply an employee target rate by 1.4–1.5 when estimating a contractor billing rate. Actual expenses and tax treatment vary, so use a tax calculator and your own benefit costs before making a decision.