Comparing a wage and a salary
Job offers come in different forms. An hourly rate is easy to compare with another hourly rate, but harder to compare with a salary. Converting both to the same period removes the guesswork.
Enter either figure and see weekly, fortnightly, monthly and annual pay together. Monthly is the annual figure divided by twelve, which matches how most salaries are paid.
Hours and paid weeks
The default is a 40-hour week and 52 paid weeks, which assumes paid holiday. If you work fewer weeks a year, for example with unpaid leave or seasonal work, reduce the paid weeks so the annual figure is realistic.
Days per week only affects the daily figure, which divides your weekly hours by the days you work.
What this does not include
Overtime, bonuses, tips, benefits, tax and deductions are all left out. For a full picture of take-home pay, use a calculator for your country that applies the current tax rules.
A worked example
A part-time worker paid 25 an hour for 30 hours a week earns 25 × 30 × 52 = 39,000 a year, or 3,250 a month. If they are only paid for 48 weeks because of unpaid time off, the annual figure falls to 36,000 and the monthly average to 3,000.
Questions people ask
How do I convert an hourly wage to an annual salary?
Multiply the hourly rate by hours per week and by weeks per year. At 20 an hour for 40 hours across 52 weeks, that is 20 × 40 × 52 = 41,600 a year.
How do I convert a salary to an hourly rate?
Divide the annual salary by the hours worked in a year. A 52,000 salary at 40 hours a week over 52 weeks is 52,000 ÷ 2,080 = 25 an hour.
Why is the standard figure 2,080 hours?
It is 40 hours × 52 weeks, a common convention for a full-time year. If you get unpaid time off, enter fewer paid weeks under More options and the hourly figure rises accordingly.
Is the result before or after tax?
Before. These are gross amounts. Take-home pay depends on your tax code or bracket, social contributions and pension, which vary by country and change every year, so they are not included here.
How do I handle part-time hours?
Change hours per week. At 15 hours a week and 18 an hour, annual pay is 18 × 15 × 52 = 14,040. If your salary is quoted pro rata, convert it using your actual hours.