Explanation
Salary and hourly pay
An hourly equivalent explains how an annual salary relates to the hours you schedule. It is a gross-pay comparison before deductions, not a payslip calculation.
Choose the question and enter values
Choose the direction first. Enter annual dollars for the first operation or hourly dollars for the second. Paid weeks should include paid leave if it is included in the salary.
H = A ÷ (h × w), and A = H × h × w.
| A | Annual salary (USD) |
|---|---|
| H | Hourly rate (USD) |
| h | Hours per week |
| w | Paid weeks per year |
A full-time annual salary
| Annual salary | 52,000 |
|---|---|
| Hours per week | 40 |
| Paid weeks per year | 52 |
| Result | $25 per hour |
Salary to hourly: 40 hours × 52 weeks = scheduled hours per year. Divide an annual salary by those hours for hourly pay, or multiply an hourly rate by them for annual pay: $52,000 → $25, rounded to cents.
Hourly work through the year
| Hourly rate | 20 |
|---|---|
| Hours per week | 40 |
| Paid weeks per year | 52 |
| Result | $41,600 per year |
Hourly to salary: 40 hours × 52 weeks = scheduled hours per year. Divide an annual salary by those hours for hourly pay, or multiply an hourly rate by them for annual pay: $20 → $41,600, rounded to cents.
A part-time salary
| Annual salary | 12,000 |
|---|---|
| Hours per week | 20 |
| Paid weeks per year | 50 |
| Result | $12 per hour |
Salary to hourly: 20 hours × 50 weeks = scheduled hours per year. Divide an annual salary by those hours for hourly pay, or multiply an hourly rate by them for annual pay: $12,000 → $12, rounded to cents.
Diagram of this result
Four figures show the same gross pay per hour, week, month and year, each rounded once to cents.
Each period's gross pay is listed as an exact dollar amount.
Common mistakes
Do not use 52 paid weeks for a contract that pays only the weeks worked. Overtime, bonuses and unpaid leave need separate adjustments.
Assumptions and limits
USD gross pay, constant weekly hours, and 1–53 paid weeks. Hourly inputs must be whole cents. Output rounds half-up to cents. No tax, overtime premiums, benefits or employment-law interpretation. Educational estimates only, not financial, tax or investment advice.
Does this estimate take-home pay?
No. Tax, insurance, retirement contributions and other deductions are outside this comparison.
Method and references
The hourly and annual equivalents are multiplication and division over scheduled hours. The U.S. Bureau of Labor Statistics publishes hours and earnings data at https://www.bls.gov/ces/ . The examples above are independent fixtures for this method.