To convert an annual salary to hourly, divide by 2,080 (52 weeks × 40 hours): a $50,000 salary equals about $24.04 per hour. To convert hourly to annual, multiply by 2,080. To convert annual to monthly, divide by 12; in India, take-home is then reduced by EPF (12%), professional tax, and income tax TDS.
About this calculator
A salary calculator (also called a pay-rate calculator) converts between different pay-period frequencies — hourly, daily, weekly, bi-weekly, monthly, and annual — so you can compare job offers, calculate overtime rates, or understand the true value of your compensation regardless of how it is quoted.
It is especially useful when comparing a job offering an annual salary against one offering an hourly rate, when budgeting based on monthly income, or when freelancers need to translate a target annual income into a billable hourly rate.
In India, employers usually quote salary as Cost To Company (CTC) — but in-hand pay is reduced by EPF (12%), professional tax, income tax TDS under the new or old regime, and health insurance. In the UK, employers quote gross annual salary; take-home is reduced by income tax, National Insurance, and pension contributions. In the US, gross annual is quoted but take-home depends on federal, state, FICA, and benefit deductions.
Common uses
- Convert an annual CTC to monthly in-hand salary
- Convert an hourly rate to an annual salary equivalent
- Compare a ₹25 LPA offer with a ₹1.8 lakh/month offer
- Calculate UK gross-to-net pay using PAYE and National Insurance
- Determine the annual equivalent of a daily consulting rate
- Set a freelance hourly rate from a target annual income
Frequently asked questions
How do I convert hourly pay to annual salary?
Annual salary = Hourly rate × Hours per week × 52. For 40 hours/week: $20/hr × 40 × 52 = $41,600. The shortcut is multiply hourly by 2,080. Use 2,000 if you account for two weeks of unpaid leave.
How do I convert annual salary to hourly rate?
Hourly = Annual ÷ (Hours per week × 52). For ₹12 lakh annual at 40 hours/week: ₹12,00,000 ÷ 2,080 = ₹576.92/hour.
How do I convert annual salary to monthly?
Monthly = Annual ÷ 12. A ₹12 lakh annual CTC = ₹1 lakh per month gross. In-hand is lower after EPF (12%), professional tax, and income tax TDS — typically 70–85% of monthly gross depending on tax regime.
What is the difference between CTC and in-hand salary?
CTC includes everything the employer spends on you: gross salary plus employer EPF, gratuity, insurance, and variable pay. In-hand is what hits your bank account after employee EPF, professional tax, and TDS. In-hand is typically 70–85% of CTC for Indian salaries.
How many hours are in a working year?
The standard is 2,080 hours = 40 hours × 52 weeks. With 2 weeks of unpaid leave, use 2,000. UK and EU calculations often use 1,872 hours after factoring in statutory holidays.
How is overtime pay calculated?
In India, overtime is typically 2× the basic hourly rate under the Factories Act. In the US, the FLSA mandates 1.5× for hours over 40 per week. In the UK, overtime is contractual and not statutory unless stated in the contract.