Hourly to Salary Calculator

To convert an hourly wage to an annual salary, use this formula: Hourly Rate x Hours per Week x Weeks per Year = Annual Salary. For example, if you earn $25/hour and work 40 hours per week for 52 weeks, your annual salary would be $25 x 40 x 52 = $52,000. This calculator handles these conversions automatically and also shows monthly, bi-weekly, weekly, and daily equivalents.

A full-time employee working 40 hours per week for 52 weeks works 2,080 hours per year. However, actual working hours vary based on paid time off, holidays, and sick days. If you have 2 weeks of vacation (50 working weeks), you'd work 2,000 hours. If you also get 10 paid holidays, that's approximately 1,920 actual working hours. Adjust the "Weeks Per Year" setting to account for unpaid time off.

Salary Pros: Predictable income, often includes benefits, may have more career advancement opportunities, paid for sick days and holidays. Salary Cons: No overtime pay for extra hours, less flexibility, may work more than 40 hours without additional compensation.

Hourly Pros: Paid for every hour worked, overtime pay (1.5x) for hours over 40, clear work-life boundaries. Hourly Cons: Income varies with hours worked, may not include benefits, hours may be cut during slow periods.

Overtime significantly impacts calculations. Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid 1.5x their regular rate for hours worked over 40 per week. If you regularly work overtime, a simple hourly-to-salary conversion will underestimate your actual earnings. For example, working 50 hours/week at $20/hour means: 40 regular hours ($800) + 10 overtime hours at $30 ($300) = $1,100/week, or $57,200/year (not $52,000). Consider your typical overtime when comparing job offers.

Your effective hourly rate includes the value of your benefits on top of your base pay. Benefits like health insurance, 401(k) matching, and paid time off can add 20-40% to your total compensation. For example, a $50,000 salary with $15,000 in benefits equals $65,000 total compensation. Divided by 2,080 work hours, that's an effective rate of $31.25/hour instead of $24.04. Use the "Include benefits value" toggle to calculate your true hourly worth when comparing job offers.