The math
Hourly = annual ÷ (hours per week × weeks per year). The standard US full-time year is 40 × 52 = 2,080 hours, so $120,000 a year is $57.69 an hour. Every other figure on the page is that hourly rate multiplied back out.
When 2,080 is the wrong number
- Contractors: you are paid for hours billed, not hours in the year. If you take 4 weeks off, use 48 weeks. $57.69/hr × 40 × 48 = $110,770, not $120,000.
- Part-time and compressed schedules: 32 hours a week at $120,000 is $72.12/hr. Same salary, very different rate.
- Salaried people who work 50-hour weeks: the honest hourly rate is $46.15, not $57.69. Useful when deciding whether a contract offer is actually a raise.
- Teachers and seasonal roles: enter the weeks under contract, not 52.
Quick reference
| Hourly | Annual (2,080 hr) | Monthly |
|---|---|---|
| $25 | $52,000 | $4,333 |
| $35 | $72,800 | $6,067 |
| $50 | $104,000 | $8,667 |
| $65 | $135,200 | $11,267 |
| $75 | $156,000 | $13,000 |
| $100 | $208,000 | $17,333 |
| $125 | $260,000 | $21,667 |
| $150 | $312,000 | $26,000 |
To compare a contract rate against a salary with benefits, use the contract to W2 converter; this page is plain arithmetic with no benefits or tax.