Salary conversion formulas
Hourly = Annual salary ÷ (Hours per week × Weeks per year)
Annual = Hourly × Hours per week × Weeks per year
Annual = Hourly × Hours per week × Weeks per year
Weekly pay is annual ÷ weeks per year, biweekly is annual ÷ (weeks ÷ 2), semimonthly is annual ÷ 24 and monthly is annual ÷ 12.
Example: A $65,000 salary at 40 hours a week for 52 weeks equals $31.25 an hour, $250 a day, $1,250 a week, $2,500 every two weeks and $5,416.67 a month. With 4 weeks of paid vacation and holidays (48 weeks actually worked), your pay per hour worked rises to $33.85.
Comparing a salaried job with an hourly job
- Overtime: most hourly workers in the U.S. earn 1.5× for hours over 40 a week; many salaried (exempt) employees do not.
- Paid time off and holidays are worth money — 3 weeks of PTO on a $31.25 rate is worth about $3,750.
- Benefits: employer health insurance and retirement matching can be worth 20–30% of salary.
- Actual hours: if a salaried role regularly needs 50 hours a week, enter 50 to see your true hourly rate.
Track actual hours and pay with the hours worked calculator.
Frequently asked questions
How do I convert an annual salary to an hourly wage?
Divide the salary by the hours you work in a year. At 40 hours a week for 52 weeks that is 2,080 hours, so $65,000 ÷ 2,080 = $31.25 an hour. A quick mental shortcut: divide the salary by 2,000 (or halve it and drop three zeros).
Should I include paid vacation?
For a like-for-like comparison with an hourly job that pays for every week, use 52 weeks. To see what you earn per hour actually worked, reduce the weeks by your vacation and holidays (for example 48 weeks). The second number is higher.
What is the difference between biweekly and semimonthly pay?
Biweekly means every two weeks — 26 paychecks a year. Semimonthly means twice a month — 24 paychecks. On a $65,000 salary, a biweekly check is $2,500 and a semimonthly check is about $2,708.
Are these amounts before or after tax?
They are gross (before tax). Take-home pay depends on federal, state and local taxes, retirement contributions and benefit deductions.