Salary Conversion Formulas
Converting between pay periods is straightforward once you know your work hours.
Standard Conversions (40 hrs/week, 52 weeks/year)
- Annual to Hourly: Annual ÷ 2,080
- Hourly to Annual: Hourly × 2,080
- Monthly to Annual: Monthly × 12
- Bi-weekly to Annual: Bi-weekly × 26
- Weekly to Annual: Weekly × 52
Example
A $60,000 annual salary equals:
- Hourly: $60,000 ÷ 2,080 = $28.85/hour
- Monthly: $60,000 ÷ 12 = $5,000/month
- Bi-weekly: $60,000 ÷ 26 = $2,307.69
- Weekly: $60,000 ÷ 52 = $1,153.85
Considerations
Salary vs. Hourly Employment
| Salary | Hourly |
|---|---|
| Consistent paycheck | Paid for exact hours worked |
| Often exempt from overtime | Usually eligible for overtime |
| Benefits often included | Benefits may vary |
| May work extra unpaid hours | All hours compensated |
What This Doesn't Include
- Taxes: Federal, state, and local income taxes
- Benefits: Health insurance, 401(k), PTO value
- Overtime: Time-and-a-half or double-time pay
- Bonuses: Annual bonuses, commissions, profit sharing