Case 1
- Gross pay
- 3500
- Pay period
- Per month
- Hours per week
- 40h
- Paid weeks per year
- 52
- Work days per week
- 5
20.19
Open with these valuesSalary to Hourly Calculator
20.19
Result: 20.19A monthly salary is converted through the year, not through an average month — twelve payments divided by your working hours in a year. The weeks-per-year field is the honest lever: enter 48 if you take four weeks unpaid, and the rate rises accordingly.
Worked examples
Case 2
- Gross pay
- 60000
- Pay period
- Per year
- Hours per week
- 40h
- Paid weeks per year
- 52
- Work days per week
- 5
28.85
Open with these valuesCase 3
- Gross pay
- 120
- Pay period
- Per day
- Hours per week
- 40h
- Paid weeks per year
- 52
- Work days per week
- 5
15.00
Open with these valuesHow it's calculated
hourly = annual / (hours per week × weeks)
- StepEnter the gross amount and say which period it covers.
- StepAdd your contracted hours per week.
- StepSet the paid weeks per year and, for a daily rate, the days per week.
- ResultRead the gross hourly rate — before tax and any deductions.
What this number means
The rate that comes out is gross
Whatever you enter comes back out scaled: enter gross pay and the hourly rate is gross, enter net pay and it is net. Nothing is deducted here.
A monthly salary is converted through the year
Twelve payments are divided by your hours in a year, not by an average month. Dividing by four weeks instead overstates the rate, because a month is longer than four weeks.
Paid weeks per year is the honest lever
Paid holiday counts as paid, so most salaried contracts mean 52 weeks. At 40 hours the same 3500 a month gives 20.19 an hour over 52 weeks and 21.88 over 48.
Work days per week only touch a daily rate
The field converts a daily rate into a weekly one before anything else happens. On the other pay periods it has no effect at all.
Commonly misread
A monthly salary divided by 4 weeks and 40 hours is the rate.
That comes out too high. Go through the year instead: 3500 a month at 40 hours and 52 weeks is 42000 divided by 2080 hours, or 20.19.
Fewer paid weeks per year means a lower hourly rate.
The opposite: the same pay spread over fewer hours raises it. Entering 48 weeks instead of 52 lifts 20.19 to 21.88.
I enter 48 weeks to account for my holiday.
Paid holiday is already inside the 52. Use 48 only if four weeks of the year go unpaid.
Questions
How do I convert an annual salary to an hourly rate?
Divide the annual amount by the hours you work in a year: hours per week times paid weeks per year. At 40 hours and 52 weeks that is 2080 hours.
How do I convert a monthly salary to an hourly rate?
Through the year, not through an average month: twelve payments divided by the hours in a year. Dividing by four weeks instead overstates the rate, because a month is longer than four weeks.
Do I enter my gross or my net pay?
Whatever you enter is what comes back out, scaled. Enter gross pay and the hourly rate is gross; enter net pay and it is net.
Should I use 52 or 48 weeks per year?
Use the weeks you are actually paid for. Paid holiday counts, so most salaried contracts mean 52 — enter 48 only if four weeks of the year are unpaid, and the hourly rate rises accordingly.
How is the daily rate handled?
The work-days-per-week field converts a daily rate into a weekly one before anything else happens. It has no effect on the other pay periods.
Sources and last check
Information, not financial advice.