The formulas
Annual pay = hourly rate × hours per week × paid weeks per year
Monthly pay = annual pay ÷ 12
Hourly rate = annual pay ÷ (hours per week × paid weeks)
A full-time year of 40 hours a week for 52 weeks is 2,080 paid hours. So 25 per hour is 25 × 2,080 = 52,000 a year, 4,333.33 a month, 1,000 a week and 200 a day.
Going the other way, a salary of 65,000 is 65,000 ÷ 2,080 = 31.25 per hour.
Why a month is not four weeks
A year has 52 weeks but 12 months, so an average month has 52 ÷ 12 ≈ 4.33 weeks. Multiplying a weekly wage by 4 underestimates monthly pay by about 8%. For 1,000 a week, monthly pay is 4,333.33, not 4,000. This calculator always goes through the annual figure to avoid that error.
Conversion table (40 hours, 52 weeks)
| Hourly | Weekly | Monthly | Annual |
|---|---|---|---|
| 15 | 600 | 2,600 | 31,200 |
| 20 | 800 | 3,466.67 | 41,600 |
| 25 | 1,000 | 4,333.33 | 52,000 |
| 30 | 1,200 | 5,200 | 62,400 |
| 40 | 1,600 | 6,933.33 | 83,200 |
| 50 | 2,000 | 8,666.67 | 104,000 |
Quick estimate: double the hourly rate and add three zeros. 25 per hour is roughly 50,000 a year (the exact figure, 52,000, is 4% higher).
More examples
- Unpaid leave. At 25 per hour with two weeks of unpaid holiday (50 paid weeks), annual pay is 25 × 40 × 50 = 50,000.
- A 37.5-hour week. Common in the UK and elsewhere. A monthly salary of 3,500 is 42,000 a year; divided by 37.5 × 52 = 1,950 hours, that is 21.54 per hour.
- Part-time. 18 per hour for 20 hours over 4 days a week is 360 a week, 1,560 a month and 18,720 a year, or 90 per working day.
Comparing a salaried job with an hourly one
The gross figure is only part of the picture. When comparing offers, consider:
- Paid leave and public holidays. An hourly contract may pay only for hours worked, so set paid weeks to the real number.
- Overtime. In the US, the Fair Labor Standards Act requires non-exempt employees to be paid at least 1.5 times their regular rate for hours over 40 in a workweek. Many salaried roles are exempt and earn nothing extra for longer hours.
- Benefits: pension or retirement contributions, health insurance, bonuses and allowances.
- Unpaid time: commuting, on-call duties and unpaid breaks lower the true hourly rate of a salary.
Common mistakes
- Using 4 weeks per month instead of 52 ÷ 12.
- Confusing gross and net pay. All figures here are before income tax, social security and other deductions, which vary by country.
- Ignoring unpaid weeks for contractors and freelancers, who often bill fewer than 48 weeks a year after holidays and gaps between projects.
Turning a salary into a contractor day rate
Freelancers and contractors are not paid for holidays, sick days or the gaps between projects, and they usually pay for their own equipment, insurance and pension. A simple way to compare with an employed salary is to divide the salary by the days you can realistically bill.
Example: to match a salary of 60,000 while billing 46 weeks of 5 days (230 days), you need 60,000 ÷ 230 = 260.87 per day. Adding 30% to cover benefits and overheads that an employer would normally pay gives about 339.13 per day. The right markup depends on your country and situation, but the method shows why contractor rates look high next to salaries.
Using the result
Enter your hourly or daily rate with the number of weeks you expect to work to see the annual equivalent, then compare it with a job offer using the same gross figures. To understand take-home pay, use your country's official tax calculator, because income tax and social contributions vary widely.
Frequently asked questions
How much is 25 an hour per year?
At 40 hours a week for 52 weeks (2,080 hours), 25 per hour is 52,000 a year, about 4,333 a month, before tax.
How do I convert a salary to an hourly rate?
Divide the annual salary by hours per week times paid weeks per year. 65,000 ÷ 2,080 = 31.25 per hour.
How many working hours are in a year?
A 40-hour week for 52 weeks gives 2,080 paid hours. With a 37.5-hour week it is 1,950 hours.
Why is monthly pay not weekly pay × 4?
A month averages 52 ÷ 12 ≈ 4.33 weeks. Multiplying by 4 underestimates monthly pay by about 8%.
What day rate matches a 60,000 salary?
Billing 230 days a year, 60,000 ÷ 230 = 260.87 per day before overheads. Adding about 30% for benefits and costs gives roughly 339 per day.
Sources
- U.S. Department of Labor, Fair Labor Standards Act: overtime pay at 1.5 times the regular rate after 40 hours.
- U.S. Office of Personnel Management, computing hourly rates of pay using the 2,087-hour divisor (federal employees) versus the common 2,080-hour standard.
Last reviewed 6 October 2026. Results are estimates; see our disclaimer.