Convert between hourly, monthly, and annual salary. Free salary calculator for employees, freelancers, and HR professionals.
Convert between hourly, monthly, and annual salary. Free salary calculator for employees, freelancers, and HR professionals.
Generated: 1/13/2026, 3:17:02 AM | AskSMB.io
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Hourly workers are paid for each hour worked and typically receive overtime pay (1.5× or 2× rate) for hours beyond 40 per week. Salaried employees receive a fixed annual amount divided into regular paychecks, regardless of hours worked. Hourly positions offer flexibility and overtime potential but may lack benefits. Salaried roles often include benefits (health insurance, paid time off, retirement) but may require unpaid extra hours.
The standard calculation assumes 40 hours/week for 52 weeks (2,080 annual hours). Part-time workers should adjust hours per week downward. If you take unpaid time off, reduce weeks per year accordingly (e.g., 50 weeks if you take 2 unpaid weeks). Paid vacation doesn't affect the calculation since you're compensated during that time. Overtime hours should not be included in base calculations.
Monthly salary is always annual salary divided by 12, creating consistent paychecks. While some months have more working days (23) than others (19), salaried employees receive identical monthly pay. This differs from hourly workers who may see variation based on actual hours. When comparing job offers, always convert to annual salary for apples-to-apples comparison, as monthly figures can be misleading.
Common errors include: (1) Using 50 weeks instead of 52 when you have paid vacation (paid time off doesn't reduce working weeks), (2) Forgetting that monthly salary × 12 equals annual, not monthly × number of working days, (3) Including overtime hours in base calculations, (4) Not accounting for unpaid time off when calculating actual earnings, (5) Comparing gross salaries without considering different tax withholdings or benefit costs.
Hourly makes sense for: variable schedules, overtime-eligible roles, part-time positions, consulting/freelancing, or jobs with unpredictable hours. Salaried works better for: management positions, exempt roles (not eligible for overtime), professional services, positions requiring flexibility, or roles where hours vary but outcomes matter more. Freelancers often charge hourly for unpredictable work and monthly retainers for ongoing, defined scope.
Where:
Annual hours = 40 × 52 = 2,080 | Annual salary = $25 × 2,080 = $52,000 | Monthly salary = $52,000 ÷ 12 = $4,333.33 | Daily salary = $52,000 ÷ 260 = $200