About

Determining the exact value of time requires precision, especially when comparing salaried positions against hourly freelance contracts. A raw annual figure often masks the true earnings per hour, particularly when standard work weeks vary between 35, 37.5, or 40 hours. This tool converts between annual, monthly, bi-weekly, weekly, and daily pay frequencies while strictly accounting for the standard 52-week year. It addresses the critical need for overtime planning by projecting earnings at Time and a Half and Double Time rates. Accurate conversion ensures fair negotiation and helps workers understand the impact of unpaid overtime on their effective hourly wage.

Formulas

The core conversion relies on the standard work year constant. The formula for the hourly rate R_h derived from an annual salary S_a is:

R_h = S_aW_weeks × H_week

Where W_weeks is typically 52 and H_week is the standard hours per week (e.g., 40). For overtime projections:

OT_1.5 = R_h × 1.5

Reference Data

Frequency	Hours (Standard)	Calculation Logic	Standard Multiplier
Annual	2080	Rate × 2080	1
Monthly	173.33	Annual ÷ 12	12
Bi-Weekly	80	Annual ÷ 26	26
Weekly	40	Annual ÷ 52	52
Daily	8	Hourly × 8	260
Overtime (1.5x)	N/A	Hourly × 1.5	N/A
Overtime (2.0x)	N/A	Hourly × 2.0	N/A
Contract (1099)	Variable	W2_Rate × 1.3	Est. Tax Burden

Frequently Asked Questions

A common error is assuming 4 weeks per month. In reality, a year has 52 weeks, not 48. The math is 52 weeks / 12 months = 4.333 weeks per month. Multiplied by 40 hours, this yields 173.33 hours.

If you are salaried at $50,000, working 35 hours instead of 40 increases your effective hourly rate. The denominator in the formula decreases, causing the rate to rise.

No. This tool calculates Gross Pay (pre-tax). Net pay varies significantly based on jurisdiction, tax brackets, and personal deductions.

There are typically 260 working days in a year (52 weeks * 5 days). This excludes holidays and vacation time, assuming a standard Monday-Friday schedule.