Compare weekly, biweekly, monthly, and annual pay

Put every offer on the same basis

An hourly rate and an annual salary are hard to compare until you specify the schedule. Begin with gross wages before deductions and use the same weekly hours and paid weeks for each estimate. Then compare benefits and variable earnings separately.

At $22 per hour, 40 hours each week, and 52 paid weeks, one week is $880, two weeks are $1,760, and the annual total is $45,760. Dividing that annual amount by 12 gives a monthly average of $3,813.33. These are equivalent views of one steady straight-time schedule, not four independent earnings amounts to add together.

Biweekly and twice monthly are different

Biweekly means every two weeks. A typical 26-payday year gives a $52,000 salary a gross payment of $2,000 if the employer divides it equally across those 26 payments. Semimonthly means twice a month: 24 equal payments would each be about $2,166.67.

Some every-two-week calendars contain 27 paydays. Ask the employer how annual salary is allocated in that case. Do not assume that an extra payday automatically increases contracted annual salary, and do not use the biweekly calculator for a semimonthly period of varying length.

A monthly average is not a deposit calendar

A worker receiving $1,760 every two weeks may receive $3,520 in a two-check month and $5,280 in a three-check month. With 26 such checks, the annual total is still $45,760 and the monthly average is still $3,813.33.

Use averages to compare annual earning power. Use actual dates and net deposits to schedule rent, bills, or savings transfers. Multiplying weekly pay by four describes four weeks; it does not describe an average calendar month, because 12 four-week periods cover only 48 weeks.

Choose paid weeks consistently

If the $22 worker is paid for only 50 weeks, annual gross becomes $44,000 and the monthly average becomes $3,666.67. The two unpaid weeks reduce annual earnings by $1,760. If those weeks are paid vacation at the same schedule and rate, they are already part of the 52-week estimate.

For salary-to-hourly comparisons, using weeks actually worked answers a different question. A $60,000 salary divided by 40 × 50 is $30 per worked hour. Dividing by 40 × 52 is about $28.85 per scheduled hour across 52 weeks. Neither comparison establishes the legal rate owed for a particular pay category.

Know when a conversion is too simple

These conversions assume one rate and a steady schedule. For seasonal work, calculate each season separately. For a midyear raise, calculate the weeks at each rate and add the results. For overtime, first calculate the appropriate weekly earnings rather than multiplying every hour by the base rate.

Keep an estimate sheet with the hourly rate, weekly hours, paid weeks, and whether overtime or bonuses are included. When comparing jobs, also note guaranteed versus optional hours and the costs and benefits that the wage calculation omits.

1. Use the weekly tool for one period of straight-time hourly work.
2. Use the biweekly tool for two matching weeks, or separately calculate weeks that differ.
3. Use the monthly or hourly-to-salary tool for an annualized schedule.
4. Use salary-to-hourly to see how expected working hours affect a salary's comparison rate.