How do I convert hourly to annual salary?
Multiply hourly rate by hours per week, then by 52 weeks. Example: $25/hour × 40 hours × 52 weeks = $52,000 annually. For part-time or different schedules, adjust the hours per week accordingly.
What's the difference between bi-weekly and semi-monthly?
Bi-weekly is every two weeks (26 pay periods/year), while semi-monthly is twice per month on fixed dates (24 pay periods/year). Bi-weekly checks are smaller but you get two extra per year.
How many work hours in a year?
Standard full-time is 2,080 hours (40 hours × 52 weeks). With vacation and holidays, actual work hours might be 1,920-2,000. Some use 2,000 for easier math.
Should I compare jobs by hourly rate or annual salary?
Convert to hourly rate for the truest comparison, especially if hours differ. A $70,000 job at 50 hours/week ($26.92/hour) pays less per hour than $60,000 at 40 hours ($28.85/hour).
How do I account for unpaid time off?
Reduce weeks per year from 52. Two weeks unpaid vacation means 50 paid weeks. Hourly: $25 × 40 × 50 = $50,000, not $52,000.
Is salary or hourly better?
Neither is universally better. Salary offers predictability and often better benefits. Hourly guarantees overtime pay for extra hours. Choose based on your work pattern and employer's practices.
Is the conversion based on 2,080 or 2,087 hours per year?
This calculator uses your Hours per Week × Weeks per Year, which is 2,080 by default. The U.S. Office of Personnel Management uses 2,087 for federal employees to average leap-year effects across a 28-year cycle. The 2,080 figure is the Department of Labor's standard for private-sector full-time work.
Why does bi-weekly × 26 not equal monthly × 12?
A calendar year is 52.143 weeks long, not exactly 48. So 26 bi-weekly periods cover all 52 weeks of pay, while 12 monthly checks average 4.33 weeks each. The annual totals match, but month-by-month two of the bi-weekly months will contain three paychecks.
Should I include overtime in my hourly rate?
Only for non-exempt hourly workers, and only if overtime is reliable. Under the federal Fair Labor Standards Act, non-exempt employees earn 1.5× their regular rate beyond 40 hours/week. Salaried exempt workers don't get overtime, so unpaid extra hours simply lower their true hourly rate.
How do I convert a salary to a freelance billing rate?
Take your target annual income, divide by realistic billable hours (often 1,400–1,700 per year, not 2,080), then add 25%–35% on top for self-employment tax, health insurance, retirement, and unpaid time. A $90,000 target salary often translates to a $75–$100/hour billing rate.
Does this calculator account for taxes?
No — every figure is gross (pre-tax). For take-home pay, use the Paycheck Calculator, which factors in federal and state withholding, Social Security, Medicare, and pre-tax deductions.
How does the U.S. Social Security wage base affect high earners?
Social Security tax (6.2%) only applies up to the annual wage base, which the SSA sets each year ($176,100 for 2025). Earnings above that are exempt from Social Security tax but still subject to the 1.45% Medicare tax. This calculator shows gross pay; the wage base only matters when computing net paychecks.
