How the conversion works
The whole calculation rests on one number: how many hours you are paid for in a year.
Annual salary = hourly rate × paid hours per year, and hourly rate = annual salary ÷ paid hours per year. For a standard full-time schedule the paid hours figure is 2,080 — forty hours a week for fifty-two weeks. Everything else, monthly, bi-weekly and weekly pay, is the annual number divided by the number of periods.
| Period | Divisor | At $41,600 a year |
|---|
| Annual | 1 | $41,600.00 |
| Monthly | 12 | $3,466.67 |
| Semi-monthly | 24 | $1,733.33 |
| Bi-weekly | 26 | $1,600.00 |
| Weekly | 52 | $800.00 |
Note that the bi-weekly and semi-monthly figures differ. Twenty-six pay periods of $1,600 is $41,600; twenty-four periods of $1,733.33 is also $41,600. The annual total is identical, but the cash arrives on a different rhythm — and twice a year, bi-weekly pay produces an extra paycheque.
The rules behind the numbers
Where 2,080 comes from
A calendar year is 365 days, which is 52 weeks and one day. 52 × 40 = 2,080. Using the more precise 52.14 weeks gives 2,085.7 hours, and some benefit providers use 2,087 to account for leap years. The 2,080 convention is what employers, payroll systems and the IRS use, and using it consistently matters more than which figure is theoretically right — a discrepancy of five hours a year will not change any decision you are making with this tool.
Paid hours against worked hours
The figure is paid hours, not hours at a desk. Paid holiday, paid vacation and paid sick leave all count, because you receive the rate for them. That is why the calculator only asks for unpaid days off.
Ten unpaid days at eight hours removes 80 hours, taking the annual figure from 2,080 to 2,000. On a $20 rate that is $41,600 dropping to $40,000 — a $1,600 difference that a job advert will never mention.
Why the headline salary overstates the hourly rate
A salaried job rarely means forty hours a week. If the real week is 45 hours, the annual hours are 2,340 rather than 2,080, and a $60,000 salary works out at $25.64 an hour rather than the $28.85 the contract implies. That is an 11% gap, and it is the reason this calculator lets you change the hours per week rather than fixing them at forty.
Overtime for salaried staff
Whether a salaried employee gets overtime depends on the exempt or non-exempt test, which turns on duties and the salary threshold rather than the job title. For a non-exempt salaried employee the regular rate is the salary divided by the hours it is intended to compensate — typically 2,080 — and overtime is one and a half times that rate. Exempt employees are not entitled to overtime at all.
Quick reference
| Hourly | Weekly (40h) | Monthly | Annual (2,080h) |
|---|
| $15.00 | $600.00 | $2,600.00 | $31,200 |
| $20.00 | $800.00 | $3,466.67 | $41,600 |
| $25.00 | $1,000.00 | $4,333.33 | $52,000 |
| $30.00 | $1,200.00 | $5,200.00 | $62,400 |
| $40.00 | $1,600.00 | $6,933.33 | $83,200 |
| $50.00 | $2,000.00 | $8,666.67 | $104,000 |
Three worked examples
1. A full-time offer at $20 an hour
Forty hours a week, fifty-two weeks, no unpaid leave. Paid hours are 2,080, so the annual figure is 20 × 2,080 = $41,600. Monthly pay is $3,466.67 and the weekly figure is $800.
The useful comparison is against a salaried offer of $42,000 that expects 45 hours a week. That salary works out at 42,000 ÷ 2,340 = $17.95 an hour — less than the hourly job, despite the larger headline number.
2. A part-time schedule at 25 hours a week
Twenty-five hours a week for 52 weeks is 1,300 paid hours. At $22 an hour the annual figure is $28,600, with monthly pay of $2,383.33. Change the weeks per year to 48 to reflect four weeks of unpaid summer leave, and paid hours drop to 1,200, giving $26,400 — a $2,200 reduction that a pro-rata offer would not spell out.
3. A $65,000 salary with ten unpaid days
Switch to the salary mode and enter $65,000, then set unpaid days to 10. Paid hours are 2,080 − 80 = 2,000. The implied hourly rate is 65,000 ÷ 2,000 = $32.50. With no unpaid leave the same salary implies $31.25 an hour.
Neither number is the one to quote in a negotiation unless you also state the hours. An hourly equivalent is only meaningful alongside the schedule it assumes — which is exactly why the calculator keeps hours per week and weeks per year visible rather than burying them.
Sources and standards
How we verify this calculator
The 2,080-hour year is the standard convention used by US employers, payroll providers and the Internal Revenue Service for converting between hourly and salaried pay. Overtime references follow the Fair Labor Standards Act.
Conventions and reference table last reviewed: 19 September 2026.
This tool provides calculations, not tax or legal advice. Withholding, benefit deductions and state rules all affect what you actually receive.
FAQ
How do you convert an hourly rate to an annual salary?
Multiply the hourly rate by paid hours in a year. For a full-time schedule that is 40 hours a week times 52 weeks, or 2,080 hours. At $20 an hour the annual figure is 20 × 2,080 = $41,600.
Why is the annual hours figure 2,080 and not 2,087?
A calendar year averages 52.14 weeks, which gives 2,085.7 hours. The 2,080 figure assumes exactly 52 weeks and is the convention employers, payroll systems and the IRS use. Using it consistently matters more than which figure is theoretically precise.
How much is $20 an hour per year?
At 40 hours a week for 52 weeks, $41,600. That is $800 a week, $1,600 bi-weekly, $3,466.67 a month and about $160 a day. With ten unpaid days off, paid hours fall to 2,000 and the annual figure becomes $40,000.
Does paid time off change the calculation?
Paid leave does not change it — you still receive the rate for those hours, so 2,080 holds. Unpaid leave does. Subtract the unpaid hours from 2,080 before multiplying. Ten unpaid days removes 80 hours.
How do I convert a salary back to an hourly rate?
Divide the annual salary by paid hours in the year. At 40 hours a week for 52 weeks that is 2,080, so $52,000 is $25 an hour. It is the figure to use when comparing a salaried offer against an hourly contract.
Why is a salaried job worth less per hour than it looks?
Because the hours are usually longer than 40 a week. Dividing $60,000 by a genuine 45-hour week gives $25.64 an hour instead of $28.85 — an 11% difference. Use the hours you will actually work.
Is overtime based on the hourly or the salary figure?
For a non-exempt salaried employee the regular rate is the salary divided by the hours it is intended to compensate — typically 2,080. A $41,600 salary gives a $20 regular rate and $30 overtime. Exempt employees are not entitled to overtime.
How many working days are in a year?
A common year has about 260 weekdays. Removing the eleven US federal holidays, of which roughly eight to ten fall on a weekday, leaves about 250 working days.
What is the difference between semi-monthly and bi-weekly pay?
Semi-monthly means twice a month, usually the 1st and 15th, giving 24 pay periods. Bi-weekly means every two weeks, giving 26. The annual total matches, but bi-weekly occasionally produces an extra paycheque in a calendar year.
Should I use gross or net pay for the comparison?
Use gross. This calculator works before tax and deductions, because withholding varies by state, filing status and elections. Compare on gross, then apply your own effective tax rate to estimate take-home pay.