How it works
What this estimate calculates
Hourly pay equals annual salary divided by working weeks per year and hours per week. Weekly, biweekly, semimonthly, and monthly figures are calendar-pay averages that divide annual salary by 52, 26, 24, and 12 periods respectively.
Assumptions to keep in mind
- The salary is spread evenly across the entered work schedule and pay periods.
- Results are gross pay before taxes, benefits, retirement contributions, and other deductions.
- Bonuses, commissions, unpaid time, and overtime are excluded unless included in annual compensation.
Reviewed references
Sources behind this calculator
Last reviewed: . These references support the concepts and context; their publishers do not review or endorse TrueCost.
- Occupational Employment and Wage Statistics: Calculation (opens in a new tab)U.S. Bureau of Labor Statistics
The standard 2,080-hour conversion and why custom work schedules may differ.
- Publication 15-T (2026) (opens in a new tab)Internal Revenue Service
The 12 monthly, 24 semimonthly, 26 biweekly, and 52 weekly payroll-period counts.
Questions people ask
Does paid time off change the hourly equivalent?
It depends on the comparison. For a salaried role with paid leave, using the normal paid weeks can show the payroll equivalent; using only hours actually worked can help compare effective compensation.
Is this my after-tax hourly pay?
No. The conversion uses gross salary. Take-home pay depends on taxes, benefits, retirement contributions, and other payroll deductions.
How should I handle bonuses or commissions?
Add compensation you reasonably expect to the annual amount for a total-pay scenario, and keep a salary-only scenario for comparison when variable pay is uncertain.
Use the result as a starting point
Try a conservative scenario and an optimistic one. If the decision only works under one narrow set of assumptions, that is useful information. For a purchase, loan, tax, or investment decision, confirm the final figures with current documents and an appropriately qualified professional.
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