Formula
Hourly = annual salary ÷ (hours per week × weeks per year)Salary = hourly × hours per week × weeks per year How it works
A full-time U.S. schedule of 40 hours a week for 52 weeks is 2,080 hours a year. That gives a handy shortcut: an hourly wage is roughly the annual salary divided by 2,000 — so $60,000 a year is about $30 an hour (exactly $28.85).
If you are salaried with paid vacation and holidays, keep 52 weeks: your salary already covers that time off. If you are an hourly or contract worker who is not paid for time off, use the number of weeks you actually work — 48 or 50 is common — to see the salary your hourly rate really adds up to.
The pay-period amounts show what one paycheck looks like before taxes. "Every two weeks" (26 checks a year) and "twice a month" (24 checks) are different schedules, which is why the biweekly figure is a little smaller.
Frequently asked questions
How many work hours are in a year?
2,080 hours for 40 hours a week over 52 weeks. Subtract unpaid time off to get your actual paid hours.
How do I compare a salaried job with a contract rate?
Contractors usually pay both halves of payroll tax and get no benefits or paid leave, so a contract hourly rate needs to be noticeably higher — often 25–40% — than the salaried equivalent to come out even.
Does overtime change the calculation?
For hourly workers, yes: hours over 40 a week are usually paid at 1.5×. This calculator assumes all hours are paid at the same rate.