How this calculator works
Annual salary is spread over the paid hours in the supplied paid weeks. Include paid leave consistently in the annual hours. The result is an arithmetic comparison before tax and deductions. It does not decide overtime eligibility, a statutory regular rate or the value of non-cash benefits.
Formula
Hourly equivalent = S/(h × n); average monthly gross = S/12. S is annual salary, h is paid hours per week and n is paid weeks per year. Hours and weeks must both be positive.
Worked example
A $78,000 annual salary covering 37.5 paid hours per week for 52 paid weeks is equivalent to $40 an hour. Its average monthly gross pay is $6,500. A $0 salary produces $0 for both outputs when the paid hours are positive.
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Frequently asked questions
Why does changing weekly hours change the hourly rate?
The annual salary stays the same. Spreading it over fewer paid hours gives a larger amount per hour.
Does monthly average match every paycheque?
No. It is annual salary divided by 12. Weekly, bi-weekly and semi-monthly payroll schedules have different pay periods.
Should paid vacation count in the weeks?
Include paid weeks. Paid vacation normally counts, while unpaid leave reduces the paid total.