Translate between annual salary and hourly rate using standard work hours — 2,080 hours for a full-time year (40 × 52). Divide to go salary→hourly, multiply to reverse it.
The example
$60,000 a year, full time.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Annual | 60000 |
| 3 | Hourly | $28.85 |
The formula
The formula:
How it works
How it works:
- A full-time year is 2,080 hours — 40 hours × 52 weeks.
- Divide annual salary by 2,080 for the equivalent hourly rate.
- Reverse it by multiplying hourly by 2,080 for an annualized salary.
- Adjust the divisor for part-time (e.g. 30 × 52 = 1,560) or for unpaid leave.
2,080 is the convention, not a law. Some employers use 2,088 (to account for the extra day in most years) or net out paid holidays and PTO to get a “productive hours” figure. Put the annual-hours number in a labeled cell so the basis is explicit and easy to change.
Try it: interactive demo
Annual salary and hours per year.
Variations
Hourly to annual
Reverse:
Part-time
30 hrs/week:
To monthly
Per month:
Pitfalls & errors
Pick the hours basis. 2,080 vs 2,088 vs productive hours change the rate — state which you use.
Part-time divisor. Scale the annual hours to the actual schedule, not the full-time 2,080.
Round consistently. Round the hourly rate to cents for payroll.
Practice workbook
Frequently asked questions
How do I convert annual salary to hourly in Excel?
How do I convert hourly back to annual?
What about part-time schedules?
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