THE METHOD
How this calculator works
Annual cash pay = annual salary + annual cash bonus. Effective hourly pay = annual cash pay ÷ (hours per week × working weeks per year).
Make working hours part of the comparison
Use a realistic average across busy and quieter weeks. A 60-hour week has 50% more working time than a 40-hour week, so a higher annual salary can still produce a lower effective hourly rate.
Working weeks belong in the hourly calculation. Reducing working weeks to allow for vacation increases effective pay per hour worked; it does not change the annual salary you entered. Set the cash bonus to zero to check the base-pay case separately.
Average pay is different from a paycheck
The monthly and pay-period amounts spread annual cash evenly across the year. A bonus paid once in February will not actually appear in every paycheck. Use your regular base pay when planning bills that recur before the bonus arrives.
The default 40 hours × 52 weeks equals 2,080 hours for comparison. Actual pay rules can use another divisor: OPM specifies 2,087 hours for most federal civilian employees. This tool does not reproduce those payroll rules.
These are gross amounts. Taxes, payroll deductions, overtime rules, benefits and employer-specific payroll calendars are outside this calculation. For a US federal withholding estimate, use the IRS resource below with your own paystub details.
WORKED EXAMPLE
A $100,000 salary with a $10,000 bonus
At 40 hours a week for 52 working weeks, $110,000 in annual cash equals $9,166.67 a month and $52.88 per hour. At 60 hours for the same 52 weeks, the effective hourly rate falls to $35.26. These are illustrative inputs, not a salary benchmark.
Assumptions and limits
- Salary and bonus are annual gross amounts. Bonus timing and payout certainty are not modeled.
- Monthly pay uses 12 periods, twice-monthly pay uses 24, and biweekly pay uses 26.
- Hourly pay is a comparison measure, not an overtime or statutory wage calculation.
- Dollar formatting uses USD. Enter all money in the same currency; no conversion is performed.
Common questions
How do I convert salary to hourly pay?
Divide annual cash pay by your average weekly hours multiplied by working weeks in the year. For salary alone, enter zero for the bonus. Use the same assumptions when comparing two jobs.
Is biweekly pay the same as twice-monthly pay?
No. The standard annualized comparison uses 26 biweekly periods and 24 twice-monthly periods. An actual payroll calendar can differ, so the result is an average rather than a forecast of a particular paycheck.
Does this calculate take-home pay or a market salary?
No. It converts the salary and bonus you provide into comparable gross amounts. It does not estimate taxes, recommend a market salary or guarantee a discretionary bonus.
Sources and methodology
Reviewed November 6, 2026. Sources support the method described above. Examples are illustrative; results depend on your inputs and require your review.