Calculation methodology
How every wage conversion is calculated
The formulas are simple. The important part is choosing assumptions that actually match the work arrangement.
The common base
Every conversion starts with an hourly rate, paid hours per week, and paid weeks per year.
Weekly gross = hourly rate × hours per week
Annual gross = weekly gross × paid weeks per year
Hourly equivalent = annual gross ÷ (hours per week × paid weeks per year)
Our default is 40 hours and 52 paid weeks, or 2,080 hours. It is a comparison convention, not a claim that every employee works or is paid for exactly 2,080 hours. Part-time, seasonal, unpaid-leave, and compressed schedules should change those inputs.
Pay-period formulas
| Period | Formula | Important interpretation |
|---|---|---|
| Daily | Weekly ÷ 5 | Assumes five workdays; change the schedule for four-day weeks. |
| Biweekly | Annual ÷ 26 | Twenty-six pay periods, usually with two three-paycheck months. |
| Semi-monthly | Annual ÷ 24 | Two checks each month; not the same as every two weeks. |
| Monthly average | Annual ÷ 12 | A planning average, not necessarily one paycheck. |
Overtime, salary, and benefits
Overtime is calculated separately from straight-time hours: overtime hours × hourly rate × the selected multiplier. The calculator never decides whether overtime is legally owed. Classification, exemptions, workweek definitions, and state rules require authoritative guidance. For US federal background, consult theDepartment of Labor overtime fact sheet.
A salary-to-hourly conversion values time only. It does not convert employer health contributions, retirement matching, paid leave, bonuses, commissions, equity, or schedule flexibility into cash unless the reader enters those items in the offer comparer.
Precision and validation
Inputs remain numeric at full JavaScript precision during a calculation. Currency is rounded for display at the final step. This prevents a displayed hourly rate such as $24.04 from being multiplied back into a slightly different annual amount when the underlying value contains more decimal places.
Automated tests verify representative conversions, sitemap scope, canonical URLs, and the legacy redirects. We also compare visible examples against the formulas above. See our editorial standards or report a correction.
Last reviewed August 14, 2026.