Short answer: Your hourly rate is your annual salary divided by the hours you actually work in a year. A $65,000 salary at 40 hours a week, 52 weeks a year, is $31.25 an hour — but take 4 weeks of paid time off out of the year and the same salary is worth $33.85 an hour of work actually done. Enter your numbers below and this free calculator shows your hourly, daily, weekly and monthly pay, both ways.
Last updated: 26 October 2026 · Estimate only — gross pay before tax, not financial advice.
Tip: use 52 for the standard year, or 48 if you take 4 weeks of paid time off — that shows what each hour you actually work is worth.
Or go the other way: hourly wage to annual salary
How the math works
- Hours per year = hours per week × weeks worked per year. At 40 hours and 52 weeks, that is 2,080 hours — the standard full-time figure US employers use.
- Hourly rate = annual salary ÷ hours per year. This is gross pay: before income tax, Social Security, Medicare, retirement contributions and health-insurance premiums.
- Weekly pay = annual salary ÷ weeks worked per year. Monthly pay = annual salary ÷ 12 (note: this is slightly more than 4 weekly paychecks, because most months have more than 4 weeks).
- Daily pay = weekly pay ÷ 5, assuming a 5-day working week. If you work a different number of days, divide weekly pay by your actual days instead.
- Paid time off changes the answer: a salary is paid for the whole year, but the hours you actually work shrink when you take leave. Using 48 weeks instead of 52 raises the hourly value of each hour worked — that is the honest rate to compare against an hourly job offer.
Worked example (illustrative — not a real job offer, not advice)
You earn $65,000 a year, working 40 hours a week, 52 weeks a year:
- Hours per year: 40 × 52 = 2,080
- Hourly rate: $65,000 ÷ 2,080 = $31.25
- Weekly pay: $65,000 ÷ 52 = $1,250.00
- Monthly pay: $65,000 ÷ 12 = $5,416.67
- Daily pay: $1,250.00 ÷ 5 = $250.00
Now count 4 weeks of paid leave (48 working weeks): the same $65,000 over 1,920 hours is $33.85 an hour of work actually done. When a recruiter quotes an hourly contract rate, compare it against that second number — and remember the contract rate usually comes with no paid leave, no employer health cover and no paid sick days, so a like-for-like comparison needs those costs added back.
FAQ
Is the 2,080-hour year always right?
It is the standard for a 40-hour week over 52 weeks, and it is what most US salary converters use. But if you regularly work 45 or 50 hours, or you take unpaid leave, your real hourly rate is lower — enter your actual hours and weeks above instead of the defaults.
Does this include overtime pay?
No. Under the Fair Labor Standards Act, most hourly workers must be paid at least time-and-a-half for hours over 40 in a week, but salaried exempt employees generally are not. If you are non-exempt and work overtime, your effective hourly rate is higher than this calculator shows — the US Department of Labor explains who qualifies.
Why is my take-home pay so much lower than this?
This calculator shows gross pay. Federal income tax, state tax, Social Security (6.2%) and Medicare (1.45%) come out first, plus any retirement or health deductions. A $65,000 salary commonly lands around $48,000–$52,000 take-home depending on state and filing status — that gap is tax, not an error.
Should I take the $35/hour contract or the $70,000 salary?
Run both through the calculator on the same hours and weeks, then adjust: the contract rate looks higher per hour, but subtract the value of paid leave, employer health contributions and job security the salary includes. If the contract is 40 hours × 52 weeks with no benefits, $35/hour = $72,800 gross — ahead on pay alone, behind once benefits are priced in.
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Sources
- U.S. Department of Labor — Fair Labor Standards Act (overtime rules)
- U.S. Bureau of Labor Statistics — Occupational Employment and Wage Statistics
Disclaimer: This tool gives a simplified gross-pay estimate for education only. It is not financial or tax advice. Actual pay depends on your contract, tax situation, benefits and local law.
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