Annual to Hourly Salary Converter
Convert between annual salary, monthly, weekly, and hourly pay rates.
=annual_salary / 2080 How It Works
Converting between pay periods helps compare job offers, calculate freelance rates, and understand your true earnings. The standard assumption is 40 hours/week for 52 weeks = 2,080 hours per year.
Basic Formulas
Annual to Hourly:
=annual_salary / 2080Hourly to Annual:
=hourly_rate * 2080Annual to Monthly:
=annual_salary / 12Annual to Biweekly:
=annual_salary / 26Example
Annual Salary: $65,000
Hourly:
=$65,000 / 2080 = $31.25/hourMonthly:
=$65,000 / 12 = $5,417/monthBiweekly:
=$65,000 / 26 = $2,500/paycheckWeekly:
=$65,000 / 52 = $1,250/weekQuick Reference Table
| Annual | Monthly | Biweekly | Weekly | Hourly |
|---|---|---|---|---|
| $30,000 | $2,500 | $1,154 | $577 | $14.42 |
| $40,000 | $3,333 | $1,538 | $769 | $19.23 |
| $50,000 | $4,167 | $1,923 | $962 | $24.04 |
| $60,000 | $5,000 | $2,308 | $1,154 | $28.85 |
| $75,000 | $6,250 | $2,885 | $1,442 | $36.06 |
| $85,000 | $7,083 | $3,269 | $1,635 | $40.87 |
| $100,000 | $8,333 | $3,846 | $1,923 | $48.08 |
| $125,000 | $10,417 | $4,808 | $2,404 | $60.10 |
| $150,000 | $12,500 | $5,769 | $2,885 | $72.12 |
Building a Salary Converter
| Input | Value |
|---|---|
| Annual Salary | $65,000 |
| Hours per Week | 40 |
| Weeks per Year | 52 |
| Paid Time Off (Weeks) | 3 |
| Output | Formula |
|---|---|
| Total Hours/Year | =B2*B3 |
| Actual Work Weeks | =B3-B4 |
| Actual Work Hours | =B2*B6 |
| Monthly | =B1/12 |
| Biweekly | =B1/26 |
| Weekly | =B1/52 |
| Hourly (Standard) | =B1/B5 |
| Hourly (Actual Work) | =B1/B7 |
Results:
- Standard hourly: $31.25
- Actual work hourly: $33.33 (accounting for PTO)
Accounting for PTO
If you want your “actual” hourly rate based on hours worked (not including vacation):
=annual_salary / ((52 - weeks_pto) * hours_per_week)Example: $65,000 with 3 weeks PTO:
=$65,000 / ((52 - 3) * 40) = $33.16/hour workedPart-Time Calculations
For part-time work, adjust hours:
| Hours/Week | Hours/Year | $20/hr Annually |
|---|---|---|
| 20 | 1,040 | $20,800 |
| 25 | 1,300 | $26,000 |
| 30 | 1,560 | $31,200 |
| 32 | 1,664 | $33,280 |
| 35 | 1,820 | $36,400 |
Formula:
=hourly_rate * hours_per_week * 52Overtime Calculations
Time and a Half (1.5x)
=base_hourly * 1.5Double Time (2x)
=base_hourly * 2Weekly Pay with Overtime
=IF(hours>40, (40*rate)+((hours-40)*rate*1.5), hours*rate)Example: $25/hour, 50 hours worked:
=(40 * $25) + (10 * $25 * 1.5) = $1,000 + $375 = $1,375Comparing Job Offers
When comparing salary vs. hourly positions:
| Factor | Salaried $70K | Hourly $35/hr |
|---|---|---|
| Base Annual | $70,000 | $72,800 |
| Expected Hours | 45/week | 40/week |
| Effective Hourly | $29.91 | $35.00 |
| Overtime? | No | Yes (1.5x) |
| OT Potential (5hr/wk) | $0 | $13,650 |
True hourly for salaried (expected hours):
=annual_salary / (expected_weekly_hours * 52)Freelance/Contractor Rate
Contractors should charge more to cover benefits and taxes:
=desired_annual / billable_hours * (1 + overhead_percent)Example: Want equivalent of $80K salary:
- Benefits value: ~$15,000
- Self-employment tax: ~12,000
- Business expenses: ~$5,000
- Billable hours: 1,600 (80% of 2,000)
=($80,000 + $15,000 + $12,000 + $5,000) / 1,600 = $70/hourW-2 to Contractor Conversion
| W-2 Salary | Minimum Contractor Rate |
|---|---|
| $50,000 | $40-50/hour |
| $75,000 | $55-70/hour |
| $100,000 | $70-90/hour |
| $125,000 | $85-110/hour |
| $150,000 | $100-130/hour |
International Work Hours
Different countries use different standards:
| Country | Standard Hours/Week | Hours/Year |
|---|---|---|
| USA | 40 | 2,080 |
| UK | 37.5 | 1,950 |
| Germany | 35-40 | 1,820-2,080 |
| France | 35 | 1,607 |
| Japan | 40 | 2,080 |
Adjust your calculation based on local standards.
The Quick Mental Math Trick
To quickly estimate hourly from annual:
- Drop the last three zeros
- Divide by 2
Example: $80,000
80 / 2 = $40/hour (actual: $38.46)Works because 2,080 ≈ 2,000.
Reverse (hourly to annual):
- Multiply by 2
- Add three zeros
Example: $25/hour
25 × 2 = 50 → $50,000 (actual: $52,000)Daily Rate Calculations
For per-day work (consulting, temp work):
8-Hour Day:
=hourly_rate * 8Daily to Annual:
=daily_rate * 260(260 = working days in a year, roughly)
| Daily Rate | Annual Equivalent |
|---|---|
| $200 | $52,000 |
| $300 | $78,000 |
| $400 | $104,000 |
| $500 | $130,000 |
| $750 | $195,000 |
| $1,000 | $260,000 |
Shift Differential
Many jobs pay extra for nights, weekends, or holidays:
=base_hourly * (1 + differential_percent)| Shift Type | Typical Differential |
|---|---|
| Evening (3pm-11pm) | +5-10% |
| Night (11pm-7am) | +10-15% |
| Weekend | +10-20% |
| Holiday | +50-100% |
Example: $20/hour base, 15% night differential:
=$20 * 1.15 = $23/hourPro Tips
-
Compare total compensation - salary is only part of the package; include benefits value
-
Know your actual hours - many salaried jobs expect 45-50+ hours; factor this in
-
Consider work-life balance - a lower hourly rate with better hours may be worth it
-
Account for commute costs - time and money spent commuting affects true hourly rate
-
Negotiate based on value - your rate should reflect skills and market demand, not just hours
For freelancers and contractors: The Annual Tax Planner Template helps track self-employment taxes, quarterly payments, and deductible business expenses throughout the year.
Common Errors
- Using 2,000 instead of 2,080 - close but off by $1-2/hour at higher salaries
- Ignoring overtime - hourly workers with OT may out-earn similar salaried positions
- Forgetting benefits - $60K + benefits often beats $70K without
- Not accounting for actual hours - salaried “40 hours” often means 45-50+