CalcRay
Income & Pay calculator

Salary to Hourly Calculator (and Reverse)

Convert annual salary to an hourly rate and back, accounting for hours per week, weeks worked, and paid time off.

52 minus unpaid weeks
PTO days (already paid)

To convert an annual salary to an hourly rate, divide the salary by the number of hours you work in a year. The standard shortcut uses 2,080 hours — 40 hours a week × 52 weeks — so a $75,000 salary is $75,000 ÷ 2,080 = $36.06 an hour. The conversion runs the other way too: an hourly rate × 40 × 52 gives the equivalent annual salary, so $36 an hour full-time is $74,880 a year. This calculator does both directions and, more usefully, adjusts for the schedule you actually work — hours per week, weeks worked, and paid time off — which the 2,080-hour shortcut ignores.

That adjustment matters because two jobs with the same salary can pay very different amounts per hour actually worked. A role with generous paid leave pays you the same salary across fewer worked hours, which raises your real rate; a role with routine unpaid overtime does the opposite.

How it's calculated

The base conversion is a single division:

Hourly rate = annual salary ÷ (hours per week × weeks worked)

The effective rate additionally accounts for paid time off. PTO days are paid but not worked, so they are removed from the denominator:

Effective hourly = annual salary ÷ (hours per week × (weeks worked − PTO days ÷ 5))

The reverse direction multiplies instead: annual salary = hourly rate × hours per week × weeks worked. Because the denominator only counts hours actually worked, the effective rate rises whenever some of your paid time is not worked — and falls if you regularly work more hours than you are scheduled for. All formulas are documented on our methodology page. Every figure is gross pay, before taxes and deductions.

Worked example: what $75,000 a year really pays per hour

Start with the naive conversion at standard full-time hours. Here are common salaries divided by 2,080 hours:

Annual salary Hourly at 2,080 hours
$40,000$19.23
$50,000$24.04
$60,000$28.85
$75,000$36.06
$100,000$48.08

Now add paid time off. Suppose the $75,000 job comes with 15 PTO days — three working weeks. Worked weeks fall from 52 to 52 − (15 ÷ 5) = 49, so hours actually worked are 40 × 49 = 1,960. The effective rate is $75,000 ÷ 1,960 = $38.27 an hour — about 6% higher than the naive $36.06. That gap is the fair-comparison correction: a $37-an-hour contract role with no paid leave pays less per worked hour than this $75,000 salary with 15 PTO days, even though $37 × 2,080 = $76,960 looks bigger on paper. Run your own offer through the calculator with the real hours and leave attached to it; the naive division and the effective rate can point in different directions.

The reverse direction works the same way with multiplication, and the schedule inputs matter just as much. A $28-an-hour job at full-time hours annualizes to $28 × 2,080 = $58,240 — but at 25 hours a week for 48 weeks it is $28 × 25 × 48 = $33,600. And a freelancer replacing a $75,000 salary who realistically bills 1,400 hours a year needs $75,000 ÷ 1,400 = $53.57 an hour just to match the gross pay, before self-employment costs — far above the $36.06 the 2,080-hour shortcut suggests.

When should you use this calculator?

Use it any time you need salary and hourly pay on the same footing. Comparing a salaried offer against an hourly or contract role is the main case: convert both to an effective rate per worked hour, with each job's actual hours and leave, and the comparison becomes honest. It is equally useful for pricing freelance work — start from the salary you are replacing and the billable hours you realistically expect, not 2,080. Other common uses: translating a job posting's salary band into an hourly figure, checking what a raise is worth per hour, seeing what routine 45-hour weeks do to your real rate, or converting a part-time hourly wage into an annual equivalent for budgeting.

The tool stops at gross pay deliberately. Net ("take-home") pay depends on your jurisdiction, filing status, and benefit elections — inputs this calculator does not collect, by design, since all math runs in your browser and nothing is stored.

Assumptions and limitations

  • All figures are gross pay — before income tax withholding, Social Security and Medicare (FICA), retirement contributions, and insurance premiums. For projecting actual U.S. federal withholding, use the IRS Tax Withholding Estimator.
  • Overtime pay is not modeled. If you are non-exempt and paid overtime, your real annual pay will be higher than hours × base rate.
  • PTO days convert to weeks at 5 working days per week.
  • Benefits (employer retirement match, health coverage, equity) are not valued here, and they can move a total-compensation comparison materially.
  • The 2,080-hour convention assumes a 40-hour week worked all 52 weeks; adjust the inputs to match your actual schedule.

This page is educational content about pay-rate arithmetic. It is not financial, tax, or career advice, and it does not consider your personal circumstances.

Last reviewed: 2026-07-09

Frequently asked questions

How do you convert salary to hourly?
Divide your annual salary by the number of hours you actually work in a year. The simplest version uses 2,080 hours (40 hours per week × 52 weeks), so a $52,000 salary is about $25 per hour. For a more accurate figure, base it on the hours you really work: hours per week × the number of weeks you work, after subtracting paid time off. This calculator does the math in both directions — salary to hourly and hourly to salary — and lets you adjust hours per week, weeks worked, and PTO.
Why does paid time off change my effective hourly rate?
Paid time off is time you are paid for but do not work, so it raises your real pay per hour worked. Your salary is fixed, but if you take, say, three weeks of paid vacation, you earn that same salary across fewer worked hours — which makes each hour actually worked worth more than salary divided by your scheduled hours. The calculator reports this PTO-adjusted "effective" hourly rate so you can compare a salaried job (with generous leave) fairly against an hourly role that only pays for hours worked. All figures here are gross, before taxes and deductions.
How much is $25 an hour per year?
$25 an hour is $52,000 a year at full-time hours: $25 × 40 hours × 52 weeks = $52,000. The same arithmetic gives quick anchors for other rates — $20 an hour is $41,600 a year, $30 is $62,400, $35 is $72,800, and $40 is $83,200, all assuming a 40-hour week worked every week of the year. If you work fewer weeks, part-time hours, or unpaid overtime, the true figure shifts; enter your actual schedule in the calculator to convert precisely in either direction.
Where does the 2,080-hours figure come from?
2,080 is the number of hours in a standard U.S. full-time work year: 40 hours per week × 52 weeks = 2,080. Payroll systems and salary surveys use it as the default divisor for converting between annual and hourly pay. It is a convention, not a law of nature — it counts every week of the year as worked, so it ignores paid holidays, vacation, and unpaid leave. If you want your real pay per hour actually worked, adjust the weeks-worked and PTO inputs; the effective rate will be higher than the naive salary ÷ 2,080 figure whenever some of your paid time is not worked.
Is the hourly rate shown before or after taxes?
Before taxes. Every figure in this calculator is gross pay — the amount your employer pays you, not the amount that lands in your bank account. Take-home pay is lower after federal and state income tax withholding, Social Security and Medicare (FICA) contributions, and any pre-tax deductions such as retirement contributions or health insurance premiums. How much lower depends on your location, filing status, and benefit elections, which is why this tool does not estimate it. The IRS Tax Withholding Estimator is the authoritative free tool for projecting your actual federal withholding.

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