The conversion formula
Annual salary = Hourly rate × Hours per week × Weeks per year Example: $20 × 40 × 52 = $41,600 Hourly rate = Annual salary ÷ (Hours per week × Weeks per year) Example: $75,000 ÷ 2,080 = $36.06 / hour The number 2,080 comes up constantly in payroll — it is 40 hours × 52 weeks, the standard full-time year in the US. A quick mental shortcut: double the hourly rate and add three zeros gives an approximate annual salary ($20/hour → roughly $40,000, exactly $41,600).
Biweekly vs. semi-monthly — they are not the same
Two pay schedules that sound identical but differ by two paychecks a year:
- Biweekly — paid every two weeks: 26 paychecks per year. Two months a year contain three paydays.
- Semi-monthly — paid twice a month (typically the 15th and last day): 24 paychecks per year, each slightly larger.
On a $75,000 salary, biweekly pay is $2,884.62 per check while semi-monthly is $3,125.00. Same annual total, different rhythm — the calculator shows both so you can match whichever schedule your employer uses.
Hourly to salary reference table
Annual gross salary at 40 hours per week, 52 weeks per year:
| Hourly | Weekly | Monthly | Annual |
|---|---|---|---|
| $15 | $600 | $2,600.00 | $31,200 |
| $18 | $720 | $3,120.00 | $37,440 |
| $20 | $800 | $3,466.67 | $41,600 |
| $25 | $1,000 | $4,333.33 | $52,000 |
| $30 | $1,200 | $5,200.00 | $62,400 |
| $35 | $1,400 | $6,066.67 | $72,800 |
| $40 | $1,600 | $6,933.33 | $83,200 |
| $50 | $2,000 | $8,666.67 | $104,000 |
Adjusting the assumptions
The defaults — 40 hours, 52 weeks — describe standard US full-time work. Change them to match your situation: many European contracts are 37.5 or 35 hours per week, and if you take unpaid time off, lower the weeks (a freelancer taking four unpaid weeks works 48). Part-time at 20 hours simply halves every figure.
What does time off cost?
The Time Off Impact tab answers the questions the plain conversion can't: how much do 10 unpaid vacation days cost, what is one day of your work worth, and what happens to annual earnings on a 4-day week or a 48-week year.
The key distinction is paid vs. unpaid. Paid time off — the norm for salaried employees — does not reduce annual pay: you earn for all 52 weeks, and the working-day figures are informational. Unpaid time off — common for freelancers, contractors, and casual workers — comes straight out of the year:
Weeks off = Days off ÷ Work days per week Annual pay = Hourly × Hours per week × (52 − Weeks off) Example: $25/hr, 40 h/wk, 20 unpaid days on a 5-day week 20 ÷ 5 = 4 weeks → 52 − 4 = 48 earning weeks Annual = 25 × 40 × 48 = $48,000 (income lost: $4,000) The value per work day figure — hourly rate × hours per week ÷ work days per week — is what each day off costs you when it is unpaid, and what each day of paid leave is effectively worth when it is paid.
Frequently asked questions
How much is $20 an hour annually?
$41,600 gross per year at 40 hours per week, 52 weeks per year ($20 × 2,080 hours). That works out to $3,466.67 per month or $800 per week, before taxes and deductions.
Are the results before or after taxes?
All figures are gross pay — before income tax, social contributions, insurance, and retirement deductions. Take-home pay depends on your country, region, and personal situation, so it cannot be calculated with a universal formula.
Does the conversion account for paid vacation?
If your time off is paid, keep weeks at 52 — you earn during vacation. Only lower the weeks figure for unpaid time off, which is common for freelancers and hourly contractors.
Why is my biweekly paycheck smaller than half my monthly pay?
Because biweekly means 26 paychecks per year, not 24. Each check covers exactly two weeks, so it equals annual salary ÷ 26 — slightly less than half a month. Twice a year you receive three paychecks in one month, which makes up the difference.
How much money do I lose taking unpaid leave?
Multiply your daily pay by the days taken. Daily pay is your hourly rate × hours per week ÷ work days per week — at $25/hour on a 40-hour, 5-day week, each unpaid day costs $200, so 10 unpaid days cost $2,000. The Time Off Impact tab computes this automatically.
Does paid vacation reduce my salary?
No. With paid time off you earn during vacation, so annual pay stays at the full 52-week figure. Only unpaid leave reduces annual earnings — which is why the calculator asks whether your time off is paid or unpaid.