How salary and hourly pay convert
The conversion runs through the yearly figure. A salary is divided by the hours you work in a year, which is hours a week times weeks a year. An hourly rate goes the other way: rate times hours times weeks. Weekly, two-weekly, twice-monthly and monthly amounts are the yearly figure divided by 52, 26, 24 and 12.
A full-time year is 40 hours for 52 weeks, or 2,080 hours, so $75,000 works out to $36.06 an hour, $1,442.31 a week and $6,250.00 a month. Paid holidays and vacation are already inside that figure, which is why the weeks field starts at 52. Change the weeks only for time off that is not paid.
Salary and hourly pay side by side
| Salary | Hourly | Weekly | Monthly | After tax a year (Texas) |
|---|---|---|---|---|
| $40,000 | $19.23 | $769.23 | $3,333.33 | $34,320 |
| $50,000 | $24.04 | $961.54 | $4,166.67 | $42,355 |
| $60,000 | $28.85 | $1,153.85 | $5,000.00 | $50,390 |
| $75,000 | $36.06 | $1,442.31 | $6,250.00 | $61,592 |
| $100,000 | $48.08 | $1,923.08 | $8,333.33 | $79,180 |
| $125,000 | $60.10 | $2,403.85 | $10,416.67 | $96,703 |
| $150,000 | $72.12 | $2,884.62 | $12,500.00 | $113,791 |
The last column is take-home pay in Texas, which has no state income tax, single and paid every two weeks. For any other state use the take-home pay calculator.
Longer weeks and unpaid time off
A salary does not grow when the week does. If a $75,000 job takes 50 hours a week, the real rate is $28.85 an hour, not $36.06. That gap is worth knowing when you weigh a salaried offer against an hourly one with overtime, since hourly staff are paid for every extra hour and most salaried staff are not.
For hourly pay the risk runs the other way. At $30.00 an hour, 52 paid weeks give $62,400; take four unpaid weeks out and the year is $57,600. Part-time salaries scale with the hours: a $75,000 full-time job worked 24 hours a week pays $45,000 pro rata.
Daily rates and paychecks
Contractors and temp agencies often quote a day rate. The calculator uses 260 working days a year, five days a week for 52 weeks, so $75,000 is $288.46 a day. Paycheck amounts follow the pay schedule: $2,884.62 every two weeks, which is 26 paychecks a year, or $3,125.00 twice a month, which is 24. The two-weekly check is smaller, but two months a year bring a third one, so the yearly total is the same.
The same arithmetic works for comparing a raise offered as an hourly increase with one offered as a salary. A $1.00 an hour raise on a full-time schedule is $2,080 a year before tax; to see what it adds to take-home pay, use the raise calculator.
What the inputs mean
- Amount and its period: enter a salary, an hourly rate or pay per week, paycheck or month.
- Hours a week: the hours you are paid for. Unpaid lunch breaks are not counted.
- Weeks a year: 52 when holidays and vacation are paid. Lower it only for unpaid weeks.
Common mistakes
- Using 50 weeks to "allow for vacation" on a salary. Paid vacation is already in the salary, so this overstates the hourly rate.
- Comparing an hourly offer with a salary at different hours. Put both on the same weekly hours first.
- Reading the hourly figure as take-home pay. It is before tax; the table shows the after-tax year for one state.
Salary and hourly questions
How much is $75,000 a year per hour?
$36.06 an hour at 40 hours a week for 52 weeks. At 50 hours a week it drops to $28.85. After federal tax and FICA in a state with no income tax, such as Texas, $75,000 is worth about $29.61 for each hour worked.
What is $30.00 an hour as a salary?
$62,400 a year at 40 hours a week, paid for all 52 weeks. If four weeks a year go unpaid, it is $57,600.
How do I compare a salaried offer with an hourly one?
Put both on the same hours. Convert the salary at the hours the job really takes, then add expected overtime to the hourly offer, paid at time and a half. Compare benefits separately, since salaried jobs often carry more paid leave.
Why does the calculator use 2,080 hours?
Forty hours times 52 weeks is 2,080. Employers use it to quote an hourly equivalent for salaried jobs, and it already includes paid holidays and vacation, since those weeks are paid too.
Sources
Rules checked . How we calculate.