Hourly Pay Calculator

To convert annual salary to hourly rate, divide your annual salary by the total number of hours worked per year. FORMULA: Hourly Rate = Annual Salary / (Hours per Week × Weeks per Year). STANDARD CALCULATION (40 hrs/week, 52 weeks): Hourly Rate = Annual Salary / 2,080. EXAMPLE 1: $52,000/year salary. $52,000 / 2,080 hours = $25.00/hour. EXAMPLE 2: $75,000/year salary. $75,000 / 2,080 hours = $36.06/hour. EXAMPLE 3: $100,000/year salary. $100,000 / 2,080 hours = $48.08/hour. ADJUSTMENTS FOR VACATION: If you have 2 weeks unpaid vacation, use 50 weeks instead of 52. $52,000 / (40 × 50) = $52,000 / 2,000 = $26.00/hour. The "true" hourly rate is slightly higher when accounting for time off. PART-TIME ADJUSTMENT: If you work 30 hours/week: $52,000 / (30 × 52) = $52,000 / 1,560 = $33.33/hour. KEY INSIGHT: The same annual salary yields different hourly rates depending on hours worked. Someone earning $50,000 working 30 hours/week makes $32.05/hour, while someone working 50 hours/week makes only $19.23/hour.

To calculate annual salary from hourly rate, multiply your hourly rate by the total hours worked per year. FORMULA: Annual Salary = Hourly Rate × Hours per Week × Weeks per Year. STANDARD CALCULATION (40 hrs/week, 52 weeks): Annual Salary = Hourly Rate × 2,080. EXAMPLES: $15/hour: $15 × 2,080 = $31,200/year. $20/hour: $20 × 2,080 = $41,600/year. $25/hour: $25 × 2,080 = $52,000/year. $30/hour: $30 × 2,080 = $62,400/year. $50/hour: $50 × 2,080 = $104,000/year. QUICK MATH SHORTCUT: Multiply hourly rate by 2,000 for a quick estimate. $25/hour ≈ $50,000/year (actual: $52,000). This is accurate within 4% and easy to calculate mentally. ACCOUNTING FOR OVERTIME: If you regularly work overtime: Base: $25/hour × 40 hrs × 52 weeks = $52,000. OT: $37.50/hour (1.5×) × 5 hrs × 52 weeks = $9,750. Total: $61,750/year. CONSIDERATIONS: Hourly workers may not get paid for holidays, sick days, or vacation. Salaried employees typically have benefits included. Actual take-home pay depends on taxes and deductions.

Bi-weekly and semi-monthly are different pay schedules that affect paycheck amounts and timing. BI-WEEKLY PAY: Paid every two weeks. 26 paychecks per year. Same day each pay period (e.g., every other Friday). Two months per year have 3 paychecks. Example: $52,000/year ÷ 26 = $2,000 per paycheck. SEMI-MONTHLY PAY: Paid twice per month (e.g., 1st and 15th). 24 paychecks per year. Pay dates may fall on different days of week. Same number of checks every month. Example: $52,000/year ÷ 24 = $2,166.67 per paycheck. KEY DIFFERENCES: | Aspect | Bi-Weekly | Semi-Monthly |. | Paychecks/year | 26 | 24 |. | Per paycheck (at $52K) | $2,000 | $2,166.67 |. | Consistency | Same weekday | Varies |. | Monthly variation | 2-3 checks | Always 2 |. WHICH IS BETTER? Bi-weekly advantages: Consistent day (easier budgeting). Two "extra" paychecks per year feeling. Better for hourly workers tracking time. Semi-monthly advantages: Aligns with monthly bills. Larger individual paychecks. Easier for rent/mortgage timing. IMPORTANT: Annual salary is the same regardless of pay frequency. The money is just divided differently throughout the year.

Overtime rates in the US are governed by the Fair Labor Standards Act (FLSA), which requires premium pay for hours worked beyond 40 per week. STANDARD OVERTIME (Time and a Half): Rate: 1.5× regular hourly rate. Applies: After 40 hours in a workweek. Example: $20/hour regular = $30/hour overtime. DOUBLE TIME: Rate: 2× regular hourly rate. Not federally required, but common in: Certain union contracts. Some state laws (California). Working holidays at some employers. Example: $20/hour regular = $40/hour double time. CALCULATING OVERTIME PAY: Scenario: $25/hour, worked 50 hours in one week. Regular pay: 40 hours × $25 = $1,000. Overtime pay: 10 hours × $37.50 = $375. Total weekly pay: $1,375. CALIFORNIA SPECIAL RULES: Daily overtime: > 8 hours in a day = 1.5×. Extended daily: > 12 hours in a day = 2×. 7th consecutive day: First 8 hours = 1.5×, after = 2×. WHO IS EXEMPT FROM OVERTIME? Executive employees. Administrative employees. Professional employees. Outside sales employees. Certain computer professionals. Generally must earn > $684/week salary. COMMON MISCONCEPTIONS: Salaried ≠ Automatically exempt. Being called "manager" doesn't make you exempt. Employers can't average hours across two weeks. Overtime is based on hours worked, not hours paid (holiday pay doesn't count toward the 40). IMPACT ON ANNUAL EARNINGS: If $25/hour worker does 5 hours OT weekly for a year: Base: $25 × 40 × 52 = $52,000. OT: $37.50 × 5 × 52 = $9,750. Total: $61,750 (18.75% increase).

PTO affects the relationship between your stated salary and your "effective" hourly rate. Understanding this helps compare job offers accurately. SALARIED EMPLOYEES WITH PTO: Your salary covers PTO - you're paid for time not worked. Effective hourly rate is HIGHER than simple calculation. Example: $52,000 salary with 2 weeks PTO. Stated rate: $52,000 / 2,080 = $25/hour. Actual hours worked: 50 weeks × 40 = 2,000. Effective rate: $52,000 / 2,000 = $26/hour. HOURLY WORKERS WITHOUT PAID PTO: If you don't get paid for time off, account for it: $25/hour × 40 hours × 50 weeks = $50,000/year. Not the full $52,000 because you're not paid for vacation weeks. COMPARING JOB OFFERS: Job A: $55,000 salary, 1 week PTO. Work 2,040 hours, effective: $26.96/hour. Job B: $52,000 salary, 4 weeks PTO. Work 1,920 hours, effective: $27.08/hour. Job B has lower salary but better hourly value! CALCULATING PTO VALUE: PTO Value = (Annual Salary / 52 weeks) × Weeks of PTO. Example: $60,000 salary, 3 weeks PTO. Weekly salary: $60,000 / 52 = $1,154. PTO value: $1,154 × 3 = $3,462. TOTAL COMPENSATION VIEW: When comparing offers, consider: Base salary. PTO value. Health insurance value. 401(k) match. Other benefits. SICK TIME CONSIDERATIONS: Some employers offer separate sick time. Unlimited PTO policies may result in less time taken. State laws may require paid sick leave.

Minimum wage is a legal requirement while living wage is what's actually needed to meet basic needs. They're often quite different. FEDERAL MINIMUM WAGE (2024): $7.25/hour (unchanged since 2009). Annual (full-time): $15,080. Below poverty line for families. Many states have higher minimums. STATE MINIMUM WAGES (examples): Washington: $16.28/hour. California: $16.00/hour. New York: $15.00-16.00/hour (varies by region). Texas: $7.25/hour (federal minimum). Georgia: $7.25/hour (federal minimum). LIVING WAGE CONCEPT: What a full-time worker needs to afford: Housing (30% of income). Food. Transportation. Healthcare. Childcare (if applicable). Taxes. Modest savings. LIVING WAGE ESTIMATES BY AREA: | Area Type | Hourly | Annual |. | Rural | $15-18 | $31K-37K |. | Small cities | $18-22 | $37K-46K |. | Medium cities | $22-28 | $46K-58K |. | Major metros | $28-35 | $58K-73K |. | High-cost (SF, NYC) | $35-45+ | $73K-94K+ |. FAMILY SIZE IMPACT: Single adult: Lower living wage. Single parent with child: Much higher (childcare costs). Two adults, one working: Higher (supporting two). Two adults, both working: Lower per person. THE GAP: Federal minimum wage worker makes $15,080/year. Living wage in most places requires $35,000-50,000+. Gap: $20,000-35,000 or more. This is why many workers need: Multiple jobs. Government assistance. Family support. Roommates/shared housing. POLICY DEBATE: Advocates for higher minimum wage: Reduces poverty. Stimulates economy. Reduces government assistance needs. Critics: May reduce jobs. Hurts small businesses. Different costs of living make national standard difficult.

Your "true" hourly rate includes all compensation, not just your paycheck. This helps compare jobs with different benefit packages. TOTAL COMPENSATION COMPONENTS: Base salary/wages. Health insurance (employer portion). Retirement contributions (401k match). PTO value. Other benefits (life insurance, HSA, etc.). CALCULATING TRUE HOURLY RATE: Step 1: Calculate annual base pay. If hourly: Rate × Hours/week × 52. If salary: Use stated salary. Step 2: Add employer-paid benefits. Health insurance: Average $7,500/year employer portion. 401(k) match: e.g., 3% of salary. Other benefits: Varies. Step 3: Add PTO value. (Annual salary ÷ 52) × Weeks of PTO. Step 4: Divide by hours actually worked. Total compensation ÷ (Hours/week × Weeks worked). EXAMPLE CALCULATION: Base salary: $52,000. Health insurance (employer): $6,000. 401(k) match (3%): $1,560. PTO (3 weeks) value: $3,000. Total comp: $62,560. Hours worked: 40 × 49 = 1,960. True hourly rate: $62,560 / 1,960 = $31.92/hour. vs. stated: $25/hour - that's 27% more! COMPARING JOB OFFERS: Job A: $60,000 salary, basic benefits. Health: $4,000 employer portion. No 401k match. 2 weeks PTO. Total: $66,308. True hourly: $33.15. Job B: $55,000 salary, great benefits. Health: $8,000 employer portion. 5% 401k match: $2,750. 4 weeks PTO. Total: $69,981. True hourly: $36.45. Job B is actually worth 10% more! WHAT TO INCLUDE: | Benefit | Typical Value |. | Health insurance | $5,000-12,000 |. | 401(k) match | 0-6% of salary |. | PTO | $1,000-5,000+ |. | Life insurance | $200-500 |. | HSA contribution | $500-2,000 |. | Tuition reimbursement | $0-5,250 |.

The standard 2,080 work hours per year (40 hrs × 52 weeks) is just a baseline. Actual hours vary significantly based on several factors. STANDARD CALCULATION: Full-time: 40 hours × 52 weeks = 2,080 hours/year. This assumes no time off and full 52-week year. FACTORS THAT REDUCE HOURS: Paid Time Off (PTO): 2 weeks vacation: -80 hours = 2,000 hours. 3 weeks vacation: -120 hours = 1,960 hours. 4 weeks vacation: -160 hours = 1,920 hours. Paid Holidays: 10 federal holidays: -80 hours. Many employers: 6-12 holidays. Sick Days: Average used: 4-5 days = -32-40 hours. FACTORS THAT INCREASE HOURS: Overtime: 5 hours OT/week adds 260 hours/year. Regular overtime can add 10-20% to hours. REALISTIC WORK YEAR EXAMPLES: | Scenario | Hours/Year |. | Theoretical max (40×52) | 2,080 |. | With 10 holidays | 2,000 |. | + 2 weeks vacation | 1,920 |. | + 5 sick days | 1,880 |. | Realistic professional | 1,880-1,920 |. | With 4 weeks vacation | 1,800 |. | Part-time (20 hrs/wk) | 1,040 |. | Heavy OT worker | 2,340+ |. WHY THIS MATTERS FOR PAY: $50,000 salary at different hour counts: 2,080 hours: $24.04/hour. 2,000 hours: $25.00/hour. 1,920 hours: $26.04/hour. 1,880 hours: $26.60/hour. INTERNATIONAL COMPARISON: US: ~1,800-2,000 hours average. Germany: ~1,350 hours average. France: ~1,500 hours average. Japan: ~1,700 hours average. US workers work 20-35% more hours than many European counterparts.