How do I convert salary to hourly?

Divide annual salary by paid hours (weekly hours × paid weeks). The true-effective figure separately divides salary plus benefits minus work costs by the hours you actually work.

What is $75,000 a year hourly?

$75,000 a year is about $36.06 per hour if you work 40 hours a week for 52 weeks. If you work fewer paid weeks, the hourly equivalent is higher.

Why separate paid weeks and worked weeks?

Paid weeks determine cash pay. Weeks actually worked exclude paid vacation and holidays, so they give a fairer comparison of the time each job requires.

How is overtime included?

In hourly-to-salary mode, overtime hours are added at the multiplier you select for every paid week. Regular plus overtime hours are capped at 168 per week. Overtime is ignored in salary-to-hourly mode.

What belongs in benefits and work costs?

Benefits can include employer-paid health cover and retirement matching. Work costs can include commuting, required equipment and incremental childcare. Use annual amounts and avoid counting anything twice.

Is this before or after tax?

Before tax. To see what you keep, run the result through the take-home pay calculator.

Income & Everyday

Salary to Hourly Calculator

Convert annual salary and hourly pay, then include paid time off, benefits and work costs to see the value per hour you actually work.

Your numbers

Convert

Annual salary

Hours per week

hrs

Paid weeks per year

wks

Include paid vacation and holidays.

Weeks actually worked

wks

Exclude paid vacation and holidays.

Employer benefits (yearly)

Optional employer-paid health, retirement match and other benefits.

Work costs (yearly)

Optional commuting, childcare, equipment and similar costs.

Statement

Cash hourly equivalent

$36.06

$37.50 per hour including benefits and work costs

Annual salary: $75,000
Monthly equivalent: $6,250.00
Twice-monthly equivalent: $3,125.00
Biweekly equivalent: $2,884.62
Weekly equivalent: $1,442.31
Workday equivalent (5-day week): $288.46
Paid hours: 2,080 hrs
Employer benefits: $0
Work costs: −$0
Total compensation: $75,000
True effective hourly: $37.50

$75,000 over 2,080 paid hours is $36.06 an hour in cash. Including benefits and subtracting work costs over 2,000 hours actually worked gives $37.50 an hour before tax.

Estimates only — not financial advice. They produce estimates based on the figures you enter and do not account for every fee, tax or change in rate.

Sources & assumptions

Formula 2026.07.18
Page updated 2026-07-18

Read the full methodology

Gross pay is converted using the paid weeks and hours you enter.
Hourly-to-salary mode can add recurring overtime at the selected multiplier; salary-to-hourly mode ignores overtime.
Benefits can be included as compensation; work costs are shown separately.
Tax, unpaid work outside the entered hours and changes in schedule are excluded.

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The 2,080-hour convention

The standard conversion divides an annual salary by 2,080 hours — 40 hours a week across 52 weeks. It works because paid holiday and paid vacation are already inside the salary: you are paid for those weeks, so they belong in the denominator.

The quick mental version is to halve the salary in thousands. A $60,000 salary is roughly $30 an hour; $80,000 is roughly $40. It is accurate to within about 4%, which is close enough for a conversation and not close enough for a decision.

When 2,080 is the wrong number

Two situations break the convention. If your leave is unpaid, you are not paid for 52 weeks — a contractor taking three unpaid weeks works 49, and their true hourly rate is 6% higher than the naive calculation suggests, because the same money is spread over fewer hours.

And if you are salaried-exempt working 50-hour weeks, the salary is spread over 2,600 hours, not 2,080. A $75,000 salary is $36.06 an hour on paper and $28.85 an hour in practice. That is the comparison to run before accepting a salaried role that expects long weeks.

Total compensation, not just cash

Cash pay is the smaller half of the comparison for many salaried roles. Employer health insurance premiums, a 401(k) match, paid parental leave, life and disability cover and employer payroll taxes are all real compensation, and an hourly or contract role usually has to price them in itself.

A reasonable rule for contractors converting from employment: add 25–35% to the employee hourly rate to cover self-employment tax, health insurance and unpaid time off before you are genuinely level. Below that, a higher headline hourly rate can still be a pay cut.

Exempt, non-exempt and overtime

The legal distinction that matters is not salary versus hourly — it is exempt versus non-exempt under the Fair Labor Standards Act. Non-exempt employees must receive time and a half above 40 hours a week regardless of whether they are paid a salary. Exempt employees receive nothing extra, and exemption requires both a salary above a federal threshold and duties that genuinely fit an executive, administrative, professional, computer or outside-sales test.

Misclassification is common. A job title does not create exemption; the duties test does. If you are salaried, work long weeks and your role does not meaningfully involve independent judgement or supervision, it is worth checking whether you should be receiving overtime.

The costs of working

Commuting, parking, professional clothing, tools, certifications and childcare are all costs incurred to earn the salary, and none of them appear in the hourly conversion. A 45-minute commute each way is 7.5 unpaid hours a week — 18% of a 40-hour job.

This is why a remote role at a lower headline salary frequently beats a higher-paying office role on an effective-hourly basis. Compute the number that includes the hours you spend and the money you spend to be there, then compare offers on that.