Converting Between Pay Periods
Job offers are quoted in whatever period suits the employer: an hourly rate for shift work, an annual figure for salaried roles, a monthly amount in much of Europe. Comparing them requires converting to a common basis, and the conversion is not always as obvious as it looks.
The standard U.S. assumptions used here are 52 weeks in a year, 26 bi-weekly pay periods, 24 semi-monthly pay periods and 12 months. Note that bi-weekly and semi-monthly are not the same: bi-weekly means every two weeks, giving 26 paychecks a year (and two months each year with three of them), while semi-monthly means twice a month, giving exactly 24.
The Conversion Formulas
Annual = Hourly × Hours per week × 52
Hourly = Annual ÷ (Hours per week × 52)
Monthly = Annual ÷ 12 Bi-weekly = Annual ÷ 26 Semi-monthly = Annual ÷ 24
A useful mental shortcut for full-time work at 40 hours a week: double the hourly rate and add three zeros. $25 an hour is roughly $50,000 a year. The exact figure is $52,000, so the shortcut runs about 4% low, but it is close enough to size up an offer instantly.
Adjusted vs. Unadjusted
An hourly worker is paid only for hours actually worked. If they take ten public holidays and fifteen vacation days without pay, they lose 25 days of income, and their real annual earnings are lower than the naive hourly-times-2,080 figure suggests.
A salaried employee is paid the same regardless, so their annual figure does not change — but their effective hourly rate rises, because the same money is earned over fewer worked hours. The calculator reports both columns so the two employment types can be compared honestly.
| Hourly employee | Salaried employee | |
|---|---|---|
| Annual pay when taking 25 days off | Falls by ~9.6% | Unchanged |
| Effective hourly rate | Unchanged | Rises by ~10.6% |
| Paid overtime | Usually yes, at 1.5× | Usually no if exempt |
Common Hourly to Annual Conversions
At 40 hours per week, 52 weeks per year (2,080 hours):
| Hourly | Weekly | Bi-weekly | Monthly | Annual |
|---|---|---|---|---|
| $15.00 | $600 | $1,200 | $2,600 | $31,200 |
| $20.00 | $800 | $1,600 | $3,467 | $41,600 |
| $25.00 | $1,000 | $2,000 | $4,333 | $52,000 |
| $30.00 | $1,200 | $2,400 | $5,200 | $62,400 |
| $40.00 | $1,600 | $3,200 | $6,933 | $83,200 |
| $50.00 | $2,000 | $4,000 | $8,667 | $104,000 |
| $75.00 | $3,000 | $6,000 | $13,000 | $156,000 |
| $100.00 | $4,000 | $8,000 | $17,333 | $208,000 |
Gross Pay Is Not Take-Home Pay
Every figure on this page is gross — before deductions. What actually reaches a U.S. bank account is reduced by:
- Federal income tax — progressive, from 10% to 37% across brackets
- Social Security — 6.2% of wages up to an annual cap
- Medicare — 1.45% with no cap, plus 0.9% above high-income thresholds
- State and local income tax — zero in nine states, over 10% at the top in California and New York
- Pre-tax deductions — 401(k) contributions, health insurance premiums, HSA and FSA contributions
Combined, these typically remove 20–35% of gross pay for a middle-income worker. A $60,000 salary commonly nets $45,000–$48,000 depending on the state and elections.
Exempt and Non-exempt Status
U.S. employment law divides workers under the Fair Labor Standards Act. Non-exempt employees must receive overtime at 1.5× the regular rate beyond 40 hours in a week. Exempt employees do not, provided they are paid on a salary basis above a threshold and their duties meet an executive, administrative or professional test.
This matters when comparing offers. A non-exempt role at $30/hour that regularly works 50 hours earns $30 × 40 + $45 × 10 = $1,650 a week, or $85,800 a year — more than a $75,000 exempt salary working the same hours, where the extra ten hours are unpaid.
Beyond Salary: Total Compensation
Two offers with the same salary can differ by tens of thousands of dollars a year once everything is counted.
| Component | Typical annual value |
|---|---|
| Employer 401(k) match | 3–6% of salary |
| Health insurance premium paid by employer | $6,000–$20,000 |
| Paid time off (20 days) | ~7.7% of salary |
| Bonus | 0–30% of salary |
| Equity / stock | Highly variable |
| Remote work | $2,000–$6,000 in commuting and related costs avoided |
Frequently Asked Questions
How many work hours are in a year?
2,080 at 40 hours a week over 52 weeks. Subtracting ten holidays and fifteen vacation days leaves 1,880 hours actually worked.
Why do I sometimes get three paychecks in a month?
Because bi-weekly pay produces 26 paychecks against 12 months. Twice a year the calendar lines up so a month contains three pay dates. The annual total is unchanged.
Is a $60,000 salary better than $30 an hour?
At 40 hours a week, $30/hour is $62,400 unadjusted — slightly more. But the hourly worker loses pay for unpaid time off, while the salaried worker does not; and the hourly worker may earn overtime, which the salaried worker may not. The answer depends on hours actually worked and the paid-leave policy.
How do I compare a monthly European salary to a U.S. one?
Multiply by 12 for the gross annual figure, but be aware that some countries pay a thirteenth or fourteenth month, and that employer-funded healthcare, pensions and statutory leave are typically far more generous, so gross salary alone understates the comparison.