Turn an hourly rate into a yearly figure — or a salary back into the hourly rate you are really being paid.
| Monthly gross | — |
| Biweekly gross | — |
| Weekly gross | — |
| Daily gross (8 hours) | — |
| Effective hourly rate | — |
| Total hours per year | — |
Annual = Hourly x Hours per week x Paid weeks
Monthly = Annual / 12
Hourly = Annual / (Hours per week x Paid weeks)
With overtime: Annual = (Hourly x Regular hours x Weeks) + (Hourly x 1.5 x Overtime hours x Weeks)
$25 per hour, 40 hours a week, 50 paid weeks:
Using 52 weeks instead of 50 would have produced $52,000 — a $2,000 overstatement. That gap is exactly the unpaid time off most people forget to subtract.
| Factor | Hourly | Salary |
|---|---|---|
| Pay per hour worked | Fixed and visible | Falls as hours rise |
| Overtime | Usually paid at 1.5x | Usually unpaid |
| Slow weeks | Income drops | Income holds |
| Time off | Not paid unless stated | Often paid |
| Predictability | Low | High |
The trap: a $60,000 salary sounds better than $28 an hour, until you notice the salary expects 50 hours a week and the hourly job is 40. $60,000 over 2,500 hours is $24 an hour — lower than the hourly job.