Convert your hourly wage to annual salary and other time periods.
A non-exempt employee earning $25/hour works a standard 40-hour week for the full year with all PTO paid.
ResultAnnual $52,000. Monthly about $4,333. Bi-weekly $2,000. Weekly $1,000. Total of 2,080 paid hours.
The calculator computes $25 × 40 × 52 = $52,000. Weekly is hourly × hours-per-week ($25 × 40 = $1,000) and monthly is annual divided by 12 ($52,000 ÷ 12 ≈ $4,333.33). This is the textbook 2,080-hour work year used by most U.S. employers and HR software.
A part-time worker earning $20/hour averages 25 hours per week across the full 52-week year with no unpaid leave.
ResultAnnual $26,000. Monthly about $2,167. Bi-weekly $1,000. Weekly $500. Total of 1,300 paid hours.
Set Hours per Week to 25 instead of 40. The math scales linearly: $20 × 25 × 52 = $26,000. Note that many part-time roles fall short of the 30 hours per week the IRS uses to define full-time for ACA purposes, which can affect benefit eligibility.
A skilled tradesperson on a four-day, 32-hour compressed week earns $35/hour and takes two unpaid weeks off for travel.
ResultAnnual $56,000. Monthly about $4,667. Bi-weekly $2,240. Weekly $1,120. Total of 1,600 paid hours.
Drop Weeks per Year from 52 to 50 to capture the two unpaid weeks: $35 × 32 × 50 = $56,000. The $2,240 gap between this and the 52-week figure ($58,800) is exactly what those unpaid weeks cost and is useful when negotiating paid leave or a higher rate to offset them.
The calculator multiplies your Hourly Rate by Hours per Week by Weeks per Year to produce the annual figure. The default 40 × 52 = 2,080 hours is the standard work year used by most private-sector employers, payroll software, and HR conversion charts in the United States.
The U.S. Office of Personnel Management uses 2,087 hours for federal civilian pay because that figure averages leap years over a 28-year cycle (2,087.143 rounded). The gap between 2,080 and 2,087 is only about 0.34%, so private-sector budgeting almost always uses 2,080; the 2,087 divisor matters mainly for federal back-pay calculations and matching an offer letter's quoted hourly rate exactly.
Derived periods come from the annual total: weekly is hourly × hours-per-week, bi-weekly is weekly × 2, and monthly is annual ÷ 12. Bi-weekly (every two weeks, 26 paychecks) is not the same as semi-monthly (twice a month, 24 paychecks). On $52,000/year, bi-weekly is $2,000 while semi-monthly would be $2,166.67 — the totals match, but per-check amounts and pay dates differ.
All results are gross. Federal income tax, FICA (7.65% combined Social Security and Medicare for employees, up to the Social Security wage base of $168,600 in 2024), state and local income tax, and benefit deductions typically reduce take-home pay by 20%–35% depending on bracket and state. FLSA overtime at 1.5× the regular rate over 40 hours per week is also excluded — add it on top of the straight-time annual if your schedule includes regular overtime.
Multiply your hourly rate by hours per week and then by weeks per year. For standard full-time work the formula simplifies to hourly × 2,080. Example: $25/hour × 40 × 52 = $52,000/year. Adjust hours per week or weeks per year if your real schedule differs from the 40 × 52 default.
Set Hours per Week to your actual average — 20, 25, 30, or 32 are common — and the math scales linearly. $20/hour × 25 hours × 52 weeks = $26,000/year. Note that the IRS treats 30 hours per week as full-time for ACA purposes, so falling under that line can affect employer benefits eligibility.
No — it returns gross pay before any deductions. Federal income tax, the 7.65% employee FICA share for Social Security and Medicare, state and local taxes, and benefit premiums typically reduce take-home by 20%–35%. Run the gross figure through a paycheck calculator if you need an after-tax estimate.
The widget calculates straight-time pay only. Under the FLSA, non-exempt workers earn 1.5× their regular rate for hours over 40 in a week. Add overtime separately: 80 OT hours per year at $25 base = 80 × $37.50 = $3,000 on top of the $52,000 base. A few states (notably California) also require daily overtime after 8 hours.
Both are used. 2,080 is the simple 40 × 52 figure used by most private-sector payroll and HR software. 2,087 is the U.S. Office of Personnel Management's standard for federal civilian pay; it averages leap years over a 28-year cycle. The difference is about 0.34% — small for budgeting but meaningful when matching an offer letter's exact hourly rate.
Convert both to annual gross using realistic hours. A $70,000 salary at 40 hours/week works out to about $33.65/hour; the same $70,000 at 50 expected hours is only $26.92/hour. If the offer is for an exempt salaried role, those extra hours come with no overtime premium under the FLSA, so the effective hourly rate is what matters.
Lower Weeks per Year by the number of unpaid weeks. Two unpaid weeks means 50, not 52: $25/hour × 40 × 50 = $50,000 instead of $52,000. Paid PTO does not require this adjustment because you're still being paid during those weeks even though you're not at work.
Bi-weekly pays every two weeks (26 checks/year), so each check is annual ÷ 26. Monthly pays once a month (12 checks/year), so each check is annual ÷ 12. On $52,000/year that's $2,000 bi-weekly versus about $4,333 monthly. The totals match — only the per-check amount and frequency differ.
Common reasons: HR is using 2,087 hours instead of 2,080, your role is exempt and the quoted rate amortizes expected overtime, the figure includes shift differentials or bonuses, or the quote is based on a 37.5-hour week (common for office roles with paid lunch). Ask HR which hours figure was used and rerun the calculator to match.
No. Contractors pay both halves of FICA (15.3% self-employment tax versus 7.65% for employees), fund their own health insurance and retirement, and absorb unbillable admin hours. A common rule of thumb is to add 25%–50% on top of an equivalent employee rate — a $50/hour contract rate is roughly equivalent to a $35–$38/hour employee role with full benefits.
Not for gross pay — the calculator's annual figure is unaffected. It matters for take-home: the Social Security portion of FICA (6.2% employee share) stops once your year-to-date earnings cross the OASDI wage base ($168,600 in 2024), so high earners see slightly larger paychecks late in the year. Medicare (1.45%) has no cap.
This calculator converts an hourly wage to annual gross income using Annual = Hourly × Hours/Week × Weeks/Year. The defaults of 40 hours and 52 weeks reproduce the standard 2,080-hour private-sector work year; federal civilian pay uses 2,087 hours (about 0.34% higher) to amortize leap years. Derived periods come from the annual figure: weekly = hourly × hours-per-week, bi-weekly = weekly × 2, and monthly = annual ÷ 12. Results are gross — pre-tax and pre-deduction — and do not include FLSA overtime (1.5× over 40 hours/week), shift differentials, bonuses, or self-employment tax.
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