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Job offers, contractor bids, gig-work rates, and benefits packages are quoted in different units — and the conversion isn't always obvious. A $30/hour offer might sound great until you discover it's 32 hours/week with no PTO; a $75,000 salary might disappoint until you compare it against your current hourly rate at 50 hours/week of unpaid overtime. Translating into a common unit makes the comparison honest. Common scenarios:
The standard US full-time work year is 2,080 hours (40 × 52). Divide annual salary by 2,080 for the hourly equivalent. These are pre-tax (gross) figures.
| Annual Salary | Hourly | Daily (8h) | Weekly | Biweekly | Semi-monthly | Monthly |
|---|---|---|---|---|---|---|
| $30,000 | $14.42 | $115.38 | $576.92 | $1,153.85 | $1,250.00 | $2,500.00 |
| $40,000 | $19.23 | $153.85 | $769.23 | $1,538.46 | $1,666.67 | $3,333.33 |
| $50,000 | $24.04 | $192.31 | $961.54 | $1,923.08 | $2,083.33 | $4,166.67 |
| $60,000 | $28.85 | $230.77 | $1,153.85 | $2,307.69 | $2,500.00 | $5,000.00 |
| $75,000 | $36.06 | $288.46 | $1,442.31 | $2,884.62 | $3,125.00 | $6,250.00 |
| $100,000 | $48.08 | $384.62 | $1,923.08 | $3,846.15 | $4,166.67 | $8,333.33 |
| $125,000 | $60.10 | $480.77 | $2,403.85 | $4,807.69 | $5,208.33 | $10,416.67 |
| $150,000 | $72.12 | $576.92 | $2,884.62 | $5,769.23 | $6,250.00 | $12,500.00 |
| $200,000 | $96.15 | $769.23 | $3,846.15 | $7,692.31 | $8,333.33 | $16,666.67 |
Two weeks of unpaid leave costs about 3.85% of annual gross; four weeks costs 7.69%. Paid vacation (PTO) preserves the 52-week calculation — unpaid leave does not.
| Hourly Rate | 52 weeks (no unpaid PTO) | 50 weeks (2 wks unpaid) | 48 weeks (4 wks unpaid) | Delta (52 vs 48) |
|---|---|---|---|---|
| $20/hr | $41,600 | $40,000 | $38,400 | -$3,200 (-7.7%) |
| $30/hr | $62,400 | $60,000 | $57,600 | -$4,800 (-7.7%) |
| $40/hr | $83,200 | $80,000 | $76,800 | -$6,400 (-7.7%) |
| $50/hr | $104,000 | $100,000 | $96,000 | -$8,000 (-7.7%) |
| $75/hr | $156,000 | $150,000 | $144,000 | -$12,000 (-7.7%) |
The US convention is hourly rate × 2,080 hours, where 2,080 = 40 hours/week × 52 weeks/year. At $28.00/hour the equivalent annual gross is $58,240. This is the figure most US employers, HR systems, and recruiters use when converting an offer. If you take unpaid leave, the realized annual pay drops proportionally — two weeks unpaid at $28/hour is $2,240 less than the 2,080-hour figure. Some non-US calculators use 2,000 hours (50 weeks × 40) or 1,920 hours (48 weeks × 40); always confirm which year-base is being used before comparing offers across countries.
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must be paid time-and-a-half (1.5x regular rate) for hours worked over 40 in a workweek. Exempt employees — typically executive, administrative, or professional roles meeting both a salary-basis test and a duties test — are not entitled to overtime regardless of hours worked. The federal salary threshold for exemption is $684/week ($35,568/year) following a November 2024 federal court ruling that vacated the Department of Labor's 2024 increases to $43,888 and $58,656. Several states (California, New York, Washington, Colorado) set higher thresholds — California's 2025 exempt minimum is $68,640/year for most employers. Job title alone does not determine exemption; the duties test matters.
The rough rule of thumb: an independent (1099) contractor needs to bill 30-40% more than a W-2 employee to take home the same after-tax pay. A $50/hour W-2 role at 40 hours/week × 52 weeks = $104,000 gross. To match it as a 1099 contractor you'd typically target $65-75/hour to cover the employer-side FICA (7.65%) you now pay yourself, plus private health insurance ($500-1,500/month for a single person, more with family), retirement contributions, unpaid sick days, vacation, and the lack of unemployment-insurance backstop. Many staffing agencies use a 1.3x to 1.5x multiplier on the equivalent W-2 hourly rate.
For self-employed 1099 work (not just contracting through an agency), the practical multiplier is 1.4 to 1.5x the W-2 hourly equivalent. The headline cost is self-employment tax: 15.3% (12.4% Social Security on net earnings up to the $176,100 wage base in 2025, plus 2.9% Medicare on all net earnings, plus an additional 0.9% Medicare on earnings over $200,000). You can deduct half of SE tax against income tax. On top of that, factor in business expenses, health insurance you must buy yourself, no employer 401(k) match, quarterly estimated tax payments, and the cost of unbillable hours spent on bookkeeping, sales, and proposals. For a target W-2-equivalent of $100,000, gross 1099 billings of $130,000-$150,000 is typical.
All figures from this calculator are gross — before federal income tax, state income tax (where applicable), FICA payroll tax (7.65% for W-2 employees: 6.2% Social Security up to $176,100 in 2025 plus 1.45% Medicare with no cap), pre-tax retirement contributions, health insurance premiums, and other deductions. Net (take-home) pay typically lands at 65-80% of gross for US W-2 employees, depending on state, filing status, dependents, and benefit elections. For an estimated net paycheck, use a paycheck calculator that accepts your state and W-4 filing details — this calculator focuses purely on the gross conversion between pay periods.
Biweekly = every two weeks = 26 pay periods/year. Two months each year contain three biweekly paydays instead of the usual two. A $52,000 salary paid biweekly is $2,000 per check (26 × $2,000 = $52,000). Semi-monthly = twice a month on fixed dates (e.g., 15th and last day) = 24 pay periods/year. The same $52,000 salary paid semi-monthly is $2,166.67 per check (24 × $2,166.67 = $52,000). Semi-monthly checks are larger but you get two fewer per year. Don't confuse them — budgeting tools that assume biweekly when payroll is actually semi-monthly will be off by ~8% per check.
Overtime (typically 1.5x hourly rate for non-exempt employees on hours over 40 per week) is added on top of regular pay, not blended into the base salary. If you regularly work 50 hours/week at $25/hour, regular pay is $25 × 40 × 52 = $52,000, and overtime is $25 × 1.5 × 10 × 52 = $19,500 — for a total of $71,500/year. Many overtime-eligible workers under-estimate annual income by treating the base $52,000 as the full picture and treating overtime as discretionary. Conversely, exempt salaried employees who work 50-hour weeks effectively earn a lower hourly rate the more they work — at $80,000/year and 50 hours/week × 50 weeks, the effective rate is $32/hour, not the $38.46 the 40-hour calculation suggests.
Paid holidays and paid sick time are baked into the standard 52-week calculation because the employer pays you for those days. Use the calculator's default 52 weeks/year unless you take unpaid leave. The 10 US federal holidays are paid for most full-time W-2 employees; PTO accruals (typically 10-20 days/year for entry through mid-career roles, 20-30+ for senior) are paid when used. Only reduce weeks/year for unpaid sabbaticals, FMLA leave without short-term disability coverage, or jobs that don't offer paid time off at all (many hourly retail and food-service roles).
No. The calculator runs entirely in your browser — every keystroke recomputes locally with no network request. There is no account, no analytics tied to the figures you enter, and refreshing the page clears all values. Safe to use for sensitive salary negotiations, contractor rate-card planning, or comparing competing offers without the numbers ever leaving your device.