Money Per Hour Calculator
Enter your salary in any format and your working hours to find exactly how much you earn per hour. The calculator converts annual, monthly, biweekly, weekly, and daily pay into a single hourly rate. You can also adjust vacation days, holidays, and other days off to compare your nominal rate against your effective hourly rate (what you truly earn per hour actually worked).
Formula
Worked example
An employee earns $60,000/year, works 40 hours/week for 52 weeks (2,080 hours/year), and has 10 vacation + 10 holiday days. Nominal rate: $60,000 / 2,080 = $28.85/hr. PTO hours: 20 days x 8 hrs = 160 hrs. Effective rate: $60,000 / (2,080 - 160) = $60,000 / 1,920 = $31.25/hr.
How to convert your salary to an hourly rate
The basic formula divides your annual gross pay by the total number of hours you are scheduled to work in a year. For a full-time employee on a standard schedule, that is 40 hours per week multiplied by 52 weeks, giving 2,080 hours. So a $60,000 annual salary equals $60,000 / 2,080 = $28.85 per hour. If you are paid monthly, multiply by 12 to get an annual figure first. If you are paid biweekly, multiply by 26. If you are paid weekly, multiply by your weeks worked per year (often 52). This calculator handles all of those conversions automatically.
Nominal rate vs. effective hourly rate
Your nominal hourly rate is simply your pay divided by scheduled hours. Your effective hourly rate is what you truly earn per hour of actual work, and it is always higher once you account for paid time off. If you have 20 paid days off (vacation plus holidays), you work about 1,920 hours but are paid for the full 2,080. On that $60,000 salary, the effective rate rises to $31.25/hr. When comparing a job that pays $28/hr on a contract with no PTO against a salaried role at $60,000 with 20 days off, the effective rates are much closer. Always compare total compensation, not just the headline number.
Why working hours and weeks per year matter
Not every full-time job means exactly 40 hours per week and 52 working weeks. Many salaried professionals routinely work 45 or 50 hours, which quietly reduces their true hourly rate. A $70,000 salary over 2,080 hours is $33.65/hr, but if you actually work 50 hours a week the same salary becomes $70,000 / 2,600 = $26.92/hr. This calculator lets you enter your real hours so the comparison is honest. Similarly, seasonal workers or those who take unpaid leave should reduce the weeks-per-year input.
The dollar value of your paid time off
Every paid day off is worth exactly one day of pay at your daily rate. At $28.85/hr with an 8-hour day, one PTO day is worth $230.80. If a new job offer cuts vacation from 15 days to 10 days, that difference costs $230.80 x 5 = $1,154 per year in lost compensation, even though the salary figure on the offer letter looks the same. Use the "Value of one PTO day" output to quantify benefits differences when evaluating competing offers.
Annual salary to hourly rate reference (40 hrs/wk, 52 wks/yr)
| Annual salary | Monthly | Biweekly | Weekly | Hourly |
|---|---|---|---|---|
| $25,000 | $2,083 | $962 | $481 | $12.02 |
| $30,000 | $2,500 | $1,154 | $577 | $14.42 |
| $35,000 | $2,917 | $1,346 | $673 | $16.83 |
| $40,000 | $3,333 | $1,538 | $769 | $19.23 |
| $45,000 | $3,750 | $1,731 | $865 | $21.63 |
| $50,000 | $4,167 | $1,923 | $962 | $24.04 |
| $55,000 | $4,583 | $2,115 | $1,058 | $26.44 |
| $60,000 | $5,000 | $2,308 | $1,154 | $28.85 |
| $65,000 | $5,417 | $2,500 | $1,250 | $31.25 |
| $70,000 | $5,833 | $2,692 | $1,346 | $33.65 |
| $75,000 | $6,250 | $2,885 | $1,442 | $36.06 |
| $80,000 | $6,667 | $3,077 | $1,538 | $38.46 |
| $90,000 | $7,500 | $3,462 | $1,731 | $43.27 |
| $100,000 | $8,333 | $3,846 | $1,923 | $48.08 |
| $120,000 | $10,000 | $4,615 | $2,308 | $57.69 |
| $150,000 | $12,500 | $5,769 | $2,885 | $72.12 |
| $200,000 | $16,667 | $7,692 | $3,846 | $96.15 |
Based on a standard 2,080-hour work year. Effective rate will be higher if you have paid time off.
Frequently asked questions
How do I convert an annual salary to an hourly rate?
Divide your annual salary by the total hours worked per year. For a standard full-time schedule that is 40 hours/week x 52 weeks = 2,080 hours. So a $50,000 salary gives $50,000 / 2,080 = $24.04/hr. If you work different hours, adjust accordingly.
What is the difference between nominal and effective hourly rate?
The nominal rate is annual pay divided by scheduled hours. The effective rate is annual pay divided by hours you actually work (excluding paid time off). Because paid vacation and holidays are included in your salary but do not add to your actual work time, the effective rate is always equal to or higher than the nominal rate. For example, a $60,000 salary with 20 days PTO yields a nominal rate of $28.85/hr but an effective rate of $31.25/hr.
How do I convert a monthly salary to hourly?
Multiply the monthly salary by 12 to get the annual figure, then divide by annual hours worked. For example, $4,500/month x 12 = $54,000/year. At 40 hrs/week for 52 weeks (2,080 hours), that is $54,000 / 2,080 = $25.96/hr.
How do I convert a biweekly paycheck to hourly?
Multiply the biweekly paycheck by 26 (the number of pay periods in a year) to get the annual salary, then divide by annual working hours. A biweekly paycheck of $2,500 equals $2,500 x 26 = $65,000/year, or $65,000 / 2,080 = $31.25/hr.
Does this calculator account for taxes?
No. All figures are gross (before-tax). Your take-home pay depends on your federal, state, and local tax brackets, social security contributions, Medicare, 401(k) contributions, and any other deductions. To see your net hourly rate, subtract all payroll deductions from annual pay before dividing by hours.
How many working hours are in a year?
For a standard full-time job at 40 hours per week and 52 weeks per year, the answer is 2,080 hours. If you subtract typical paid holidays (10 days) and paid vacation (10 days), you actually work closer to 1,920 hours. Some employers use 2,087 hours to account for the exact average when accounting for leap years.
How do I use the hourly rate to compare job offers?
Calculate the effective hourly rate for each offer (annual pay divided by hours actually worked). Then factor in the dollar value of each offer's benefits package: health insurance, retirement matching, paid time off, and bonuses. A lower headline salary with generous PTO and full benefits can easily equal or exceed a higher salary with minimal extras.