KKoumen Tools PRO

What does that job actually pay?

Hourly to yearly, yearly to hourly — including the hours nobody counts.

$

52 weeks is a full year with no unpaid leave. Drop it to 50 if you take two weeks off.

Hourly → yearly
$52,000
Monthly$4,333
Weekly$1,000
Per day$200

Converting an hourly rate into a salary, and back

Job listings mix hourly rates, annual salaries and monthly figures freely, and the conversions hide assumptions about hours and weeks that are rarely stated. This tool shows the assumptions so you can adjust them.

  1. Pick the direction. Enter a rate to get a salary, or a salary to get a rate. The two fields stay in sync, so typing in either one updates the other.
  2. Adjust hours per week. The default is 40, which gives the standard 2,080-hour year. Part-time work, a four-day week, or a job with regular overtime all need this changed — otherwise the annual figure will be wrong in a way that looks plausible.
  3. Adjust weeks per year. Fifty-two is the naive answer and it ignores unpaid leave. Two weeks of unpaid holiday gives 50, which lowers the annual figure by almost 4%. Salaried roles usually keep 52 because paid leave is already inside the salary.
  4. Read the secondary figures. Monthly, weekly and daily amounts are derived from the same inputs. They are there because rent is monthly and freelance day rates are daily, and doing that division in your head at a kitchen table is where errors creep in.

When this comes up

Questions

Why is $25 an hour about $52,000 a year?

$25 × 40 hours × 52 weeks = $52,000. The 2,080-hour year is the standard US convention for full-time work, and it is what almost every employer and lender means when they convert.

Is the annual figure before or after tax?

Before. Everything here is gross pay. Net pay depends on federal and state tax, Social Security and Medicare, and any pre-tax deductions, which vary too much by location and situation to model usefully in a single tool. Treat the result as the number that appears at the top of the payslip, not the one at the bottom.

How do I compare a 1099 contract rate with a W-2 salary?

Take the contract annual figure and subtract the costs a employer would normally carry: the employer half of Social Security and Medicare (7.65%), unpaid holiday and sick days, health insurance, and any retirement match. A common rule of thumb is that a contract rate needs to be 25–35% higher than the equivalent salary to break even.

Does overtime change the calculation?

For a non-exempt US employee, hours over 40 in a week are paid at 1.5× the normal rate. This tool converts a flat rate, so for a job with regular overtime enter the average effective hourly rate — total pay divided by total hours — rather than the base rate.

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