Hourly Pay Calculator
Convert between hourly, daily, weekly, biweekly, monthly, and annual pay. Enter values for instant results with step-by-step formulas.
Formula
Hourly Rate = Annual Salary / (Hours/Week x Weeks/Year) | OT Rate = Hourly x Multiplier
The calculator converts between pay periods using standard time relationships: 8 hours per day, 5 days per week, and the specified weeks per year (default 52). Overtime is calculated at the specified multiplier (default 1.5x) for hours beyond the standard work week. Tax deductions are applied as a simple effective rate percentage.
Worked Examples
Example 1: Annual Salary to Hourly Breakdown
Problem: Convert a $75,000 annual salary to all pay periods, 40 hrs/week, 52 weeks, with 25% effective tax rate.
Solution: Hourly = $75,000 / (40 x 52) = $75,000 / 2,080 = $36.06/hr\nDaily = $36.06 x 8 = $288.46\nWeekly = $36.06 x 40 = $1,442.31\nBiweekly = $1,442.31 x 2 = $2,884.62\nMonthly = $75,000 / 12 = $6,250.00\nAfter Tax Annual = $75,000 x 0.75 = $56,250\nAfter Tax Monthly = $4,687.50
Result: $36.06/hr | $6,250/mo gross | $4,687.50/mo after tax
Example 2: Hourly with Overtime
Problem: Calculate total pay for $22/hr with 10 hours overtime per week at 1.5x, 50 working weeks.
Solution: Regular weekly = $22 x 40 = $880\nOT rate = $22 x 1.5 = $33/hr\nOT weekly = $33 x 10 = $330\nTotal weekly = $880 + $330 = $1,210\nAnnual base = $880 x 50 = $44,000\nAnnual OT = $330 x 50 = $16,500\nTotal annual = $60,500
Result: $22/hr base | $33/hr OT | $60,500 total annual
Frequently Asked Questions
How do you convert an annual salary to an hourly rate?
To convert an annual salary to an hourly rate, divide the total yearly salary by the number of working hours in a year. For a standard full-time employee working 40 hours per week for 52 weeks, the total annual hours are 2,080. So a $60,000 annual salary equals $60,000 / 2,080 = $28.85 per hour. If you take vacation time (e.g., 2 weeks unpaid), you would use 50 weeks instead: $60,000 / (40 x 50) = $30.00 per hour. This distinction matters when comparing job offers — a $28/hour position with paid time off may be more valuable than a $30/hour contract with no benefits. Always account for actual working weeks and hours to get an accurate comparison.
What is the difference between gross pay and net pay?
Gross pay is the total amount earned before any deductions, while net pay (take-home pay) is the amount received after all deductions are subtracted. Deductions typically include federal income tax, state income tax (where applicable), Social Security tax (6.2% of wages up to $168,600 in 2024), Medicare tax (1.45% of all wages, plus 0.9% above $200,000), health insurance premiums, retirement contributions (401k, 403b), and other voluntary deductions like flexible spending accounts. For a typical single filer earning $60,000, effective total deductions might be 25-32% of gross pay, meaning net pay could be $40,800-$45,000. Understanding the gross-to-net conversion is essential for budgeting and comparing compensation packages.
How does overtime pay work under US labor law?
Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular hourly rate for all hours worked beyond 40 in a single workweek. Some states have additional overtime rules — California, for example, requires overtime after 8 hours in a single day and double-time after 12 hours. Exempt employees (typically salaried workers in executive, administrative, or professional roles earning above $35,568 annually) are generally not entitled to overtime pay. The overtime rate is calculated on the regular hourly rate, not including shift differentials or bonuses unless they are non-discretionary. Employers who fail to pay required overtime face penalties, back pay obligations, and potential legal action under both federal and state law.
How should I compare hourly pay vs salary offers?
Comparing hourly and salaried positions requires looking beyond the base numbers to total compensation value. First, convert both to equivalent annual amounts using Hourly Pay Calculator. Then consider: benefits value (health insurance typically worth $5,000-$15,000 annually per individual, more for family coverage), retirement contributions (a 4% 401k match on $60,000 = $2,400/year), paid time off (10 days PTO at $30/hour = $2,400 value), overtime eligibility (hourly workers often earn time-and-a-half, adding 15-25% to income), job stability and predictability of hours, and career advancement trajectory. A salaried position at $55,000 with full benefits can easily be worth more than a $30/hour contract position ($62,400 annually) without benefits.
How accurate are the results from Hourly Pay Calculator?
All calculations use established mathematical formulas and are performed with high-precision arithmetic. Results are accurate to the precision shown. For critical decisions in finance, medicine, or engineering, always verify results with a qualified professional.
How do I get the most accurate result?
Enter values as precisely as possible using the correct units for each field. Check that you have selected the right unit (e.g. kilograms vs pounds, meters vs feet) before calculating. Rounding inputs early can reduce output precision.