How pay periods convert
Every conversion goes through a yearly total. An hourly rate is multiplied by hours per week and by 52 weeks; a monthly salary by 12; a biweekly check by 26; a semimonthly check by 24. Once you have the annual figure, divide by the number of periods you want. The “adjusted” column then removes holidays and vacation days from the 260 or so working days in a typical year.
The formulas
Annual = hourly × hours/week × 52 = daily × days/week × 52 = weekly × 52 = biweekly × 26 = semimonthly × 24 = monthly × 12 Working days = days/week × 52 − holidays − vacation days
Worked example
At $28 an hour, 40 hours a week: 28 × 40 × 52 = $58,240 a year, or $4,853.33 a month and $2,240 every two weeks.
With 10 unpaid holidays and 10 unpaid vacation days, you work 260 − 20 = 240 days. At $224 a day (8 hours × $28), that's $53,760 a year adjusted.
Going the other way, a $70,000 salary is $33.65 an hour over 2,080 hours — or $36.46 an hour if you only count the 240 days actually worked.
Assumptions and limitations
- All figures are gross pay before taxes and deductions.
- A year is treated as exactly 52 weeks. Calendar years have 52 weeks plus one or two days, which is why some years have 27 biweekly paydays.
- Overtime, shift differentials, bonuses and tips aren't included.
Background: U.S. Department of Labor, Fair Labor Standards Act (overtime rules).
Frequently asked questions
How many work hours are in a year?
A full-time schedule of 40 hours a week for 52 weeks is 2,080 hours. That is why a quick rule of thumb is that $1 an hour is about $2,000 a year: $25 an hour × 2,080 = $52,000.
What is the difference between biweekly and semimonthly pay?
Biweekly means every two weeks — 26 paychecks a year, with two months that have three paydays. Semimonthly means twice a month, usually the 15th and the last day — 24 paychecks. On the same salary, each biweekly check is a little smaller than each semimonthly check.
What does the "adjusted" column mean?
For hourly or daily pay, it assumes holidays and vacation days are unpaid, so your yearly total drops. For a salary, your pay stays the same but you work fewer days, so the effective hourly and daily rates rise. If your hourly job offers paid time off, use the unadjusted column.
Is this before or after taxes?
Before. These are gross pay figures. Federal and state income tax, Social Security, Medicare and any benefit deductions come out of each paycheck, so take-home pay is lower.
How do I compare an hourly job with a salaried one?
Convert both to the same period with the same hours. Remember that hourly roles may pay overtime at 1.5× for hours over 40 a week under the Fair Labor Standards Act, while many salaried roles are exempt from overtime.
CalcNest results are estimates based on the inputs and assumptions above, not financial, tax or lending advice. A lender's official Loan Estimate or your account statement is the final word.