The conversion formulas
Monthly = Annual ÷ 12
Biweekly = Annual ÷ 26
Semi-monthly = Annual ÷ 24
- Weeks worked
- 52 minus any unpaid weeks
The subtlety is that biweekly and semi-monthly are not the same thing. Biweekly means every two weeks — 26 pay periods a year. Semi-monthly means twice a month — 24 periods. On the same salary, semi-monthly cheques are larger but arrive less often.
With two weeks of unpaid leave — 50 working weeks — the annual figure falls to $50,000.
The three-paycheque month
On a biweekly schedule you receive 26 payments a year, but 12 months × 2 is only 24. Twice a year, a month contains three paydays.
This is not extra money — the annual total is unchanged. But budgeting monthly against a biweekly cheque means ten months are slightly tight and two are unexpectedly comfortable. Budgeting against 24 payments and treating the two extra as savings is the cleaner approach.
| Schedule | Periods | On $52,000 |
|---|---|---|
| Weekly | 52 | $1,000.00 |
| Biweekly | 26 | $2,000.00 |
| Semi-monthly | 24 | $2,166.67 |
| Monthly | 12 | $4,333.33 |
Salary is not total compensation
Comparing two offers on base salary alone misses most of the picture. Benefits typically add 25% to 40% on top of base pay.
- Employer retirement match. A 5% match on $80,000 is $4,000 of real value, and it vests.
- Health insurance. Employer contributions to US family coverage average well over $17,000 a year.
- Paid leave. 20 days of holiday plus 10 public holidays is six weeks — roughly 11.5% of a working year.
- Equity. RSUs or options, though these carry real risk and vesting schedules.
- Employer payroll taxes. In the US, the employer pays a matching 7.65% FICA.
Salaried against hourly
A salaried role paying $52,000 for 50 hours a week is really $20 an hour, not $25. If you are exempt from overtime, hours are the variable that determines your actual rate — which is exactly why this calculator asks for them.
For take-home after tax, use the income tax calculator. For hours worked in a week, the time card calculator.
Frequently asked questions
How do I convert an hourly wage to an annual salary?
Multiply the hourly rate by hours per week, then by weeks worked per year. At $25 an hour for 40 hours over 52 weeks, that is $52,000.
If you have unpaid leave, reduce the weeks accordingly — 50 weeks gives $50,000.
What is the difference between biweekly and semi-monthly pay?
Biweekly is every two weeks — 26 payments a year. Semi-monthly is twice a month — 24 payments. Semi-monthly cheques are larger, biweekly ones more frequent.
On biweekly pay, two months each year contain three paydays.
How many working hours are in a year?
2,080 at 40 hours a week over 52 weeks. Subtracting 10 public holidays and 15 days of leave gives roughly 1,880 hours actually worked.
The 2,080 figure is the standard basis for salary-to-hourly conversion in the US.
Is my salary before or after tax?
Advertised salaries are almost always gross — before tax and deductions. Take-home is typically 65% to 80% of gross depending on your jurisdiction and situation.
Use the income tax calculator for the net figure.
How should I compare two job offers?
On total compensation, not base salary. Add the retirement match, employer health contribution, the value of paid leave and any equity.
Then divide by hours actually worked. A higher salary for 55-hour weeks can be a lower effective rate than a smaller one for 40.