How to Convert Between Pay Periods
If you know your pay in one time frame and need it in another, the math comes down to two numbers: how many hours you work per week, and how many weeks you work per year. A standard full-time schedule in the US is 40 hours across 5 days, 52 weeks a year. That gives you 2,080 working hours annually.
To go from an hourly wage to an annual salary, multiply your hourly rate by your weekly hours, then by 52. So $20/hour becomes $20 × 40 × 52 = $41,600 per year. To reverse it – annual salary to hourly rate – divide by 2,080. A $55,000 salary works out to roughly $26.44/hour.
For other periods, the annual figure is your anchor point. Divide by 12 for monthly, by 24 for semi-monthly, by 26 for biweekly, or by 52 for weekly. The calculator above handles all of this instantly, including adjustments for non-standard schedules – part-time hours, compressed work weeks, or different numbers of working weeks per year.
Pay Period Comparison
Different employers pay on different schedules, and the frequency affects how you budget – even if the annual total is the same. Here’s what each paycheck looks like for the same $52,000 annual salary:
| Pay Schedule | Frequency | Paychecks / Year | Gross per Check |
|---|---|---|---|
| Weekly | Every week | 52 | $1,000 |
| Biweekly | Every 2 weeks | 26 | $2,000 |
| Semi-monthly | 1st and 15th | 24 | $2,167 |
| Monthly | Once per month | 12 | $4,333 |
Biweekly is the most common pay schedule in the US. An important detail: biweekly and semi-monthly are not the same thing. Biweekly means every two weeks (26 paychecks per year), while semi-monthly means twice per month on fixed dates (24 paychecks). With biweekly pay, you’ll receive three paychecks in two months of the year, which can be a useful budgeting windfall.
How Overtime Affects Your Earnings
Under the Fair Labor Standards Act (FLSA), non-exempt employees in the US must receive overtime pay for any hours worked beyond 40 in a single work week. The standard overtime rate is 1.5 times the regular hourly rate – often called “time and a half.” Some employers offer double time for holidays or excessive hours, though this isn’t federally required.
The impact of overtime on annual earnings is significant. A worker earning $20/hour who consistently puts in 5 overtime hours per week earns an additional $150/week in OT pay. Over 52 weeks, that’s $7,800 extra – a 15% increase over the base salary of $41,600.
Use the “Adjust Schedule & Overtime” section in the calculator above to model your overtime earnings. You can change both the number of weekly overtime hours and the multiplier to match your situation.
Working Hours in a Year
The standard US working year assumes 2,080 hours – that’s 40 hours per week for all 52 weeks. In practice, most workers don’t actually work every single week. Between federal holidays, paid vacation, and sick days, the actual number of hours worked is typically lower.
The US has 11 federal holidays. The average private-sector worker receives about 8 paid holidays and 10-15 vacation days per year, depending on tenure. Here’s how time off chips away at the full 2,080:
| Scenario | Days Off | Working Hours |
|---|---|---|
| No time off (theoretical max) | 0 | 2,080 |
| Federal holidays only | 11 | 1,992 |
| Holidays + 10 vacation days | 21 | 1,912 |
| Holidays + 15 vacation days | 26 | 1,872 |
| Holidays + 20 vacation days | 31 | 1,832 |
For hourly workers who don’t receive paid time off, this distinction matters directly – fewer working days means less income. For salaried workers, the annual pay stays the same, but the effective hourly rate increases because you’re earning the same amount for fewer hours worked.
Wage vs Salary
Though people often use these terms interchangeably, there is a meaningful difference. A wage is compensation based on hours worked – you’re paid a set rate for each hour, and your total pay varies depending on how many hours you clock. A salary is a fixed annual amount divided into regular payments, regardless of exact hours worked in a given week.
The practical implications are significant. Wage earners (typically classified as “non-exempt” under the FLSA) are entitled to overtime pay when they exceed 40 hours per week. Salaried employees classified as “exempt” generally are not – they earn the same amount whether they work 38 hours or 50 in a given week. As of 2024, the salary threshold for overtime exemption was updated to $43,888 per year ($844/week); employees earning below this threshold are entitled to overtime regardless of how they’re classified.
When comparing a wage-based job offer with a salaried one, converting both to the same time frame makes the comparison fair. This calculator lets you enter either an hourly rate or an annual salary and see the equivalent across all pay periods instantly.
Quick Hourly-to-Annual Reference
For a standard 40-hour work week over 52 weeks, here are common hourly rates and their annual equivalents:
A handy shortcut: double your hourly rate and add three zeros for a rough annual estimate. $25/hour ≈ $50,000. It’s slightly off (the real number is $52,000), but it’s quick mental math that gets you within 4% of the actual figure.
Tips for Comparing Job Offers
Raw pay is only part of the equation when evaluating compensation. If one position pays $55,000 annually and another pays $25/hour, the salary offer looks higher ($55,000 vs $52,000). But if the hourly position regularly includes 5 hours of overtime per week, the effective annual earnings jump to $61,750 – making it the better-paying role.
Beyond the numbers, consider paid time off (hourly workers often don’t receive it), employer-provided healthcare, retirement contributions, and other benefits. These can easily add 20-30% to the actual value of a compensation package. An employer matching 401(k) contributions at 4% on a $50,000 salary is worth an additional $2,000 per year that doesn’t appear on any paycheck.
If you’re evaluating multiple offers, convert everything to the same time frame using the calculator above, factor in overtime if applicable, and then account for benefits separately. That gives you the clearest picture of what each opportunity is actually worth.