How many working hours are in a year?

Standard US: 52 weeks × 40 hours = 2,080 hours. After 10 federal holidays: 2,000 hours. After 2 weeks vacation: 1,960 hours. Use 2,080 for contract/gross comparisons and 1,960 for net effective comparisons.

How do I convert a $65,000 salary to an hourly rate?

$65,000 / 2,080 hours = $31.25/hour gross. If the role has 3 weeks paid leave, effective hours are 1,960: $65,000 / 1,960 = $33.16/hour.

What is the difference between gross and net pay?

Gross pay is your total earnings before deductions. Net pay (take-home) is after federal/state income tax, Social Security (6.2%), Medicare (1.45%), and any benefits deductions. Net is typically 65–80% of gross depending on tax bracket and deductions.

How do I compare a salary with full benefits vs a higher hourly rate without benefits?

Add the value of benefits to the lower salary for comparison. Health insurance: ~$7,000–$15,000/year employer contribution. 401(k) match: typically 3–6% of salary. A $60,000 job with benefits often beats a $68,000 contract without them.

Formula Guide

How to Convert Between Hourly, Monthly & Annual Salary

Comparing job offers and negotiating salary requires converting between different pay periods. An hourly rate, monthly salary, and annual salary all express the same earnings in different units of time. The conversion assumes a standard work year — typically 2,080 hours (52 weeks × 40 hours/week) in the US, though actual billable hours vary with paid leave, holidays, and overtime.

Last updated: March 31, 2026

The Formula

Annual = Hourly × Hours per Week × Weeks per Year
Annual = Monthly × 12
Hourly = Annual / (Weeks per Year × Hours per Week)
Monthly = Annual / 12
Weekly = Annual / 52

US standard: 2,080 hrs/year (52 weeks × 40 hrs)

After deducting 10 federal holidays and 2 weeks vacation, effective hours = (52−3) × 40 = 1,960 hrs/year. Use 2,080 for total contracted hours, 1,960 for effective working hours.

Variable Definitions

Symbol	Name	Description
hrs/wk	Hours per Week	Standard full-time is 40 hrs/week. Part-time varies. Include regular overtime only if it is guaranteed.
wks/yr	Weeks per Year	52 for gross calculation. Subtract vacation and holiday weeks for net calculation.

Step-by-Step Example

A job offer is $28/hour, 40 hours/week. Convert to monthly and annual salary. Compare to another offer of $58,000/year.

Given

Hourly rate:$28/hrHours per week:40Weeks per year:52

Solution

1
Weekly pay: $28 × 40 = $1,120/week
2
Annual salary: $1,120 × 52 = $58,240/year
3
Monthly salary: $58,240 / 12 = $4,853/month
4
Compare to $58,000 offer: $58,240 > $58,000 — the hourly offer pays slightly more

$28/hr = $58,240/year = $4,853/month. The hourly offer pays $240 more annually.

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Common Mistakes to Avoid

Using 2,080 hours without adjusting for paid time off — if a salaried role includes 3 weeks PTO, the effective hourly rate is higher than if unpaid.

Comparing gross hourly to salaried gross without accounting for benefits — a salaried role with health insurance and 401(k) match has higher total compensation than the gross salary.

Forgetting overtime — non-exempt hourly workers earn 1.5× for hours over 40/week; this can significantly change annual earnings.

Not considering bi-weekly vs semi-monthly pay — bi-weekly means 26 paycheques/year; semi-monthly means 24. The monthly take-home differs even at the same annual salary.

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