Job offers, loan applications and budgeting tools usually think in annual terms, while many paychecks are built from an hourly rate. Converting between the two is simple multiplication, but the assumptions — hours per week, paid weeks, overtime — make a real difference. This calculator lets you set each one.
How to use the hourly to salary calculator
- Enter your hourly wage.
- Enter the hours you work per week. Use your typical schedule, not the maximum.
- Enter paid weeks per year: 52 if holidays and vacation are paid, fewer if you take unpaid time off.
- Optionally add hours per day for a daily figure and regular overtime hours, which are paid at 1.5×.
- Read the annual salary on the tape, with monthly, semimonthly, biweekly, weekly and daily equivalents.
Hourly to salary formula
With overtime, the weekly pay becomes rate × regular hours + rate × 1.5 × overtime hours before multiplying by weeks.
Worked example
A job pays $30.00 an hour for a 40-hour week, with paid holidays and vacation.
Weekly pay = 30 × 40 = $1,200
Annual salary = 1,200 × 52 = $62,400
Monthly = 62,400 ÷ 12 = $5,200; biweekly = 62,400 ÷ 26 = $2,400; daily (8 hours) = $240
If the same worker took two weeks of unpaid leave, annual pay would be 1,200 × 50 = $60,000. Adding 3 overtime hours every week at time and a half would add 30 × 1.5 × 3 × 52 = $7,020.
Hourly wages as annual salaries
At 40 hours a week and 52 paid weeks:
| Hourly wage | Weekly | Monthly | Annual |
|---|---|---|---|
| $15 | $600 | $2,600 | $31,200 |
| $20 | $800 | $3,467 | $41,600 |
| $25 | $1,000 | $4,333 | $52,000 |
| $30 | $1,200 | $5,200 | $62,400 |
| $40 | $1,600 | $6,933 | $83,200 |
| $50 | $2,000 | $8,667 | $104,000 |
A quick mental shortcut: double the hourly rate and add three zeros. $25 an hour is roughly $50,000 a year (the exact figure is $52,000 because a year has 2,080 hours, not 2,000).
Comparing hourly and salaried offers
An hourly job and a salaried job with the same annual figure are not always equal:
- Overtime. Non-exempt hourly workers earn premium pay for hours over 40; exempt salaried workers usually do not, so long weeks lower their effective hourly rate.
- Hours can vary. An hourly schedule cut from 40 to 32 hours reduces annual pay by 20%.
- Benefits. Health insurance, retirement matches and paid leave can be worth 20% to 40% of wages. Compare total compensation, not just pay.
To go the other direction, use the salary to hourly calculator. To see what a raise must be to keep pace with prices, try the salary inflation calculator.
Results are gross pay estimates before taxes and deductions and assume a constant schedule throughout the year.
Frequently asked questions
How do I convert an hourly wage to a yearly salary?
Multiply the hourly rate by the hours you work per week and then by the number of paid weeks in a year. At 40 hours and 52 weeks, that is the hourly rate × 2,080. For example, $30 an hour is $62,400 a year.
Why is 2,080 hours used for a full-time year?
Forty hours a week times 52 weeks equals 2,080 hours. It assumes paid holidays and vacation, which is how most employers and the federal government quote annual pay for full-time hourly jobs.
How much is $20 an hour per year?
At 40 hours a week for 52 weeks, $20 an hour is $41,600 a year, about $3,467 a month or $1,600 every two weeks, before taxes.
Should I use 52 weeks if my vacation is unpaid?
No. Subtract the unpaid weeks. Two weeks of unpaid leave at $30 an hour and 40 hours a week reduces annual pay from $62,400 to $60,000.