Basics · Updated April 2026
Salary to Hourly Conversion — Math and Common Mistakes
Convert a salary to hourly, or hourly to salary, without getting tripped up by PTO, overtime, or the "but what about vacation?" question.
The formula (short version)
Hourly rate = Annual salary ÷ 2,080
2,080 is full-time hours in a year: 40 hours/week × 52 weeks. Here's the conversion for common salaries:
| Annual salary | Hourly rate | Biweekly gross | Monthly gross |
|---|---|---|---|
| $30,000 | $14.42 | $1,154 | $2,500 |
| $40,000 | $19.23 | $1,538 | $3,333 |
| $50,000 | $24.04 | $1,923 | $4,167 |
| $60,000 | $28.85 | $2,308 | $5,000 |
| $75,000 | $36.06 | $2,885 | $6,250 |
| $100,000 | $48.08 | $3,846 | $8,333 |
| $125,000 | $60.10 | $4,808 | $10,417 |
| $150,000 | $72.12 | $5,769 | $12,500 |
| $200,000 | $96.15 | $7,692 | $16,667 |
All figures are gross (before tax). Actual take-home is 20–35% lower depending on state and filing status.
Going the other direction
Annual salary = Hourly rate × 2,080
- $20/hour = $41,600/year
- $25/hour = $52,000/year
- $30/hour = $62,400/year
- $40/hour = $83,200/year
- $50/hour = $104,000/year
The mental shortcut
Drop three zeros from the salary and cut in half: $60,000 → $60 → $30/hour. The real number is $28.85, but "$30" is close enough for job-offer comparisons on the spot. Works cleanly because 2,000 ≈ 2,080 (2,000 is within 4% of 2,080, and full-time salaried workers are usually within a buck or two per hour of this shortcut).
The PTO gotcha
When people convert their salary to "what am I really worth per hour?" they sometimes subtract vacation weeks from 2,080. Don't — not for a salaried worker receiving paid vacation. You're paid the same whether you work 52 weeks or 50 (with 2 weeks of PTO). Your effective "hours worked per dollar earned" is lower, but your hourly value to the employer doesn't change. If you're comparing two salaried jobs with different PTO allotments, the better apples-to-apples comparison is:
Effective hourly = Salary ÷ (2,080 − PTO hours)
A $75K job with 3 weeks PTO (120 hours) has an effective hourly of $75,000 ÷ (2,080 − 120) = $38.27. The same salary with 5 weeks PTO is $75,000 ÷ (2,080 − 200) = $39.89 — a meaningful $1.62/hour gap.
Overtime math
Federal FLSA requires time-and-a-half for non-exempt hourly workers above 40 hours/week. Your overtime rate is:
OT rate = Regular hourly × 1.5
$25/hour regular = $37.50/hour overtime. For a week of 50 hours (40 regular + 10 OT): (40 × $25) + (10 × $37.50) = $1,000 + $375 = $1,375 gross for that week.
Some states have daily overtime rules (California: over 8/day or 40/week, with double-time over 12/day). Check your state if you work irregular schedules.
What this looks like after tax
The hourly-to-salary number is gross. Actual take-home depends on federal, state, and FICA. A $75,000 salary in Texas nets roughly $59,400/year (~79%), while the same salary in California nets closer to $56,200/year (~75%). Use the paycheck calculator to see your exact take-home at any salary level.
Hourly worker?
The hourly paycheck calculator takes your hourly rate, weekly hours, and overtime and shows your exact take-home pay — bi-weekly, monthly, and annual.