How pay periods convert
Hourly, daily and weekly figures are pay for the time you actually work. Bi-weekly, semi-monthly and monthly figures spread the annual total evenly over the paychecks in a year. The calculator converts whatever you type to an annual amount, then divides it back out.
Worked example
An annual salary of 60,000 at 40 hours a week and 52 paid weeks:
| Pay period | How it's worked out | Gross pay |
|---|---|---|
| Hourly | 60,000 ÷ 2,080 hours | 28.85 |
| Daily | 60,000 ÷ 260 days | 230.77 |
| Weekly | 60,000 ÷ 52 | 1,153.85 |
| Bi-weekly | 60,000 ÷ 26 | 2,307.69 |
| Semi-monthly | 60,000 ÷ 24 | 2,500.00 |
| Monthly | 60,000 ÷ 12 | 5,000.00 |
Why 2,080 hours?
A full-time year is usually taken as 40 hours × 52 weeks = 2,080 hours. It assumes paid holidays and leave, so every week counts. If you work 37.5 hours a week, or take unpaid weeks off, change the settings and the hourly figure adjusts.
The ×2,000 shortcut
For a quick mental estimate, multiply an hourly rate by 2,000 to get a rough annual figure. At 25 an hour that gives 50,000. The exact figure for 2,080 hours is 52,000, so the shortcut sits about 4% low. That gap is roughly two weeks of unpaid time, which makes the shortcut a cautious guess for hourly workers without paid leave. Going the other way, halve an annual salary and drop three zeros: 60,000 a year is roughly 30 an hour.
Bi-weekly vs semi-monthly pay
They sound alike but are not the same:
- Bi-weekly means every two weeks: 26 paychecks a year. Two months a year have three paydays.
- Semi-monthly means twice a month, often on the 15th and the last day: 24 paychecks a year.
On the same 52,000 salary, a bi-weekly paycheck is 2,000 and a semi-monthly one is 2,166.67. The annual total is identical. Budget with the monthly figure (4,333.33 here), not with two bi-weekly paychecks, or you'll underestimate your income.
Gross pay, not take-home
These are amounts before income tax, social security, pension contributions and other deductions. For Indian salaries, estimate tax with the income tax calculator. If you're comparing a job offer with freelancing, the freelance rate calculator shows why a contractor's hourly rate needs to be well above a salary ÷ 2,080.
Tips
- Compare job offers on the annual figure, then check benefits separately.
- Paid overtime, bonuses and allowances are not included. Add them to the annual figure if they're regular.
- Part-time? Set your real hours per week to get an accurate hourly rate.
Frequently asked questions
How do I convert an hourly wage to an annual salary?
How many working hours are in a year?
What's the difference between bi-weekly and semi-monthly?
Does this calculator deduct tax?
What if I take unpaid leave?
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