To convert an annual salary to an hourly rate, divide the salary by 2,080, the number of hours in a standard full-time year (40 hours × 52 weeks). A $60,000 salary works out to $60,000 ÷ 2,080 = $28.85 an hour. To go the other way, multiply the hourly rate by 2,080: $25 an hour is $52,000 a year. Adjust the hours if your normal week is not 40, and remember that the rate alone does not capture overtime, unpaid time off or benefits.
The conversion formulas
For other pay periods, convert to an annual figure first:
| You know | Annual equivalent | Example to hourly (40 h/week) |
|---|---|---|
| Weekly pay | × 52 | $1,150 × 52 = $59,800 → $28.75 |
| Biweekly pay | × 26 | $2,400 × 26 = $62,400 → $30.00 |
| Semimonthly pay | × 24 | $2,500 × 24 = $60,000 → $28.85 |
| Monthly pay | × 12 | $5,000 × 12 = $60,000 → $28.85 |
A biweekly paycheck covers 80 hours, so dividing it by 80 gives the hourly rate directly. The salary to hourly calculator handles any schedule.
Salary to hourly table
| Annual salary | Hourly at 40 h/week (2,080 h) | Hourly at 37.5 h/week (1,950 h) | Biweekly gross | Monthly gross |
|---|---|---|---|---|
| $30,000 | $14.42 | $15.38 | $1,153.85 | $2,500.00 |
| $40,000 | $19.23 | $20.51 | $1,538.46 | $3,333.33 |
| $50,000 | $24.04 | $25.64 | $1,923.08 | $4,166.67 |
| $60,000 | $28.85 | $30.77 | $2,307.69 | $5,000.00 |
| $75,000 | $36.06 | $38.46 | $2,884.62 | $6,250.00 |
| $100,000 | $48.08 | $51.28 | $3,846.15 | $8,333.33 |
| $125,000 | $60.10 | $64.10 | $4,807.69 | $10,416.67 |
| $150,000 | $72.12 | $76.92 | $5,769.23 | $12,500.00 |
Hourly to salary table
| Hourly rate | Annual at 2,080 hours | Annual at 2,000 hours (2 unpaid weeks) |
|---|---|---|
| $15 | $31,200 | $30,000 |
| $20 | $41,600 | $40,000 |
| $25 | $52,000 | $50,000 |
| $30 | $62,400 | $60,000 |
| $40 | $83,200 | $80,000 |
| $50 | $104,000 | $100,000 |
The 2,000-hour column is the basis of the popular shortcut “double it and add a thousand”: $25 an hour × 2 = 50, so roughly $50,000. It slightly understates pay for someone paid for all 52 weeks. For the exact figure, use the hourly to salary calculator.
When 2,080 is not the right number
Different standard weeks
Many offices define full time as 37.5 or 35 hours. Use 1,950 or 1,820 hours. A $60,000 salary is $30.77 an hour at 37.5 hours and $32.97 at 35 hours.
Part-time and seasonal work
Multiply the hourly rate by the hours you actually expect to work. Someone earning $18 an hour for 25 hours a week, 50 weeks a year, earns $18 × 25 × 50 = $22,500.
Unpaid time off
Hourly workers are usually paid only for hours worked or for paid leave they have earned. If you expect two unpaid weeks, use 50 weeks (2,000 hours) for a realistic annual figure.
The calendar year
Payroll uses 2,080 by convention, but a calendar year has 260, 261 or 262 weekdays. Both 2025 and 2026 have 261 weekdays, or 2,088 hours. Employers paying hourly staff for every weekday will pay slightly more than the 2,080-hour estimate in those years. The guide on how many work hours are in a year has the year-by-year counts.
Daily rates and partial pay periods
Employers often prorate a salary by workday when someone starts or leaves mid-period. Dividing by 260 workdays (52 weeks × 5 days) gives a daily rate: $60,000 ÷ 260 = $230.77 a day. If you start on a Wednesday and the pay period ends Friday, your first check would cover 3 days, or $692.31. Some employers instead divide by the actual number of workdays in that month or pay period, so the daily figure can vary slightly; your offer letter or employee handbook should say which method applies.
Overtime changes the comparison
Under the Fair Labor Standards Act (FLSA), non-exempt employees earn at least 1.5 times their regular rate for hours over 40 in a workweek. An hourly worker at $25 who averages 45 hours a week earns:
- Regular: 40 × $25 = $1,000
- Overtime: 5 × $37.50 = $187.50
- Weekly: $1,187.50, or $61,750 a year
A salaried exempt employee earning $60,000 who regularly works 50 hours a week is effectively paid $60,000 ÷ 2,600 = $23.08 per hour worked. When you compare a salaried offer with an hourly one, estimate the real hours on both sides. To exempt someone from overtime as an executive, administrative or professional employee, the FLSA requires a salary of at least $684 a week ($35,568 a year) under the threshold the Department of Labor currently enforces, plus a duties test. See how to calculate time and a half for overtime math.
Do not forget benefits
An hourly rate compares cash wages only. Health insurance, retirement matches, paid leave and the employer’s share of payroll taxes are a large part of total pay. The Bureau of Labor Statistics’ Employer Costs for Employee Compensation survey regularly finds that benefits account for roughly 30% of total compensation for civilian workers. Contractors and freelancers need a much higher hourly rate than employees to come out even, because they pay for their own benefits and both halves of Social Security and Medicare tax. The guide on how to calculate self-employment tax explains that cost.
A simple way to compare a W-2 job with contract work:
- Start with the employee salary and add the employer’s benefit costs (ask HR or estimate 25% to 35%).
- Add 7.65% for the employer’s share of FICA.
- Divide by the hours you could realistically bill in a year, often 1,500 to 1,800 after vacations, admin time and gaps between clients.
From hourly to take-home pay
Converting salary to hourly gives gross pay. Taxes, retirement contributions and insurance premiums come out before you see the money, so a $28.85 rate might translate to $21 to $23 in your pocket per hour. To go from gross to net, follow how to calculate net pay or use the paycheck calculator. If you are evaluating a raise, the raise calculator shows the new hourly and annual figures side by side.
This guide is general information, not financial or legal advice. Employers may define standard hours, pay periods and exempt status differently; check your offer letter, pay stub or state labor department for specifics.
Frequently asked questions
How much is $60,000 a year per hour?
About $28.85 an hour, based on 2,080 hours (40 hours a week for 52 weeks). If your standard week is 37.5 hours, it is $30.77 an hour.
How much is $25 an hour per year?
$52,000 a year before taxes at 40 hours a week for 52 weeks. A quick mental shortcut is to double the hourly rate and add three zeros, which gives $50,000 and assumes about 2,000 hours, or two unpaid weeks.
Why 2,080 hours?
It is 40 hours a week times 52 weeks. Payroll departments and federal pay systems use it as the standard full-time year. The actual number of weekday hours in a calendar year is 2,080, 2,088 or 2,096 depending on how the weekends fall.
Should I include paid time off when converting salary to hourly?
For a straight conversion, no: a salary already pays for holidays and vacation, so divide by 2,080. To find what you earn per hour actually worked, subtract paid days off from the hours; that gives a higher effective rate.
Is a salaried job always exempt from overtime?
No. Under the Fair Labor Standards Act, an employee must meet salary-basis, salary-level (currently $684 a week) and job-duties tests to be exempt. Salaried employees who fail any test are still owed overtime for hours over 40 in a workweek.