Hourly to Salary Calculator
Convert hourly rate to annual salary
52 weeks = full year, 50 weeks = 2 weeks vacation
Salary Breakdown
Pro Tip
Remember that salary figures are gross income before taxes, benefits, and other deductions!
Quick Facts
Privacy & Security
Your income information is completely private. All calculations are performed locally in your browser - no data is transmitted, stored, or tracked. Your financial details remain confidential and secure.
What is an Hourly to Salary Calculator?
An hourly to salary calculator is an essential tool for hourly workers and job seekers that converts an hourly wage into equivalent annual salary and other pay period amounts. Whether you're comparing job offers (one hourly, one salaried), negotiating pay, budgeting your income, or evaluating a career change, understanding your annual earning potential from an hourly rate is crucial. The calculator accounts for standard work hours (typically 40 hours per week, 52 weeks per year for 2,080 annual hours), potential overtime hours, unpaid time off, and variations in work schedules to provide accurate salary equivalents. For example, $25 per hour translates to approximately $52,000 annually for full-time work, but this changes with different hours worked or overtime rates. This tool helps hourly employees understand their true earning potential, compare opportunities fairly across different pay structures, set realistic budgets based on annual income, and communicate their compensation in salary terms when needed for loans, rentals, or other financial applications. It's particularly valuable in today's gig economy where many workers juggle multiple hourly positions or freelance work and need to understand their combined annual earning power.
Key Features
Annual Salary Calculation
Convert hourly rate to yearly salary based on hours worked per week
Multiple Pay Period Breakdown
See monthly, weekly, and daily earning equivalents from your hourly wage
Overtime Consideration
Include regular overtime hours at time-and-a-half to calculate total annual income
Variable Work Hours
Calculate for any work schedule from part-time to full-time plus overtime
Paid Time Off Adjustment
Account for unpaid vacation or sick days that reduce annual hours worked
Take-Home Pay Estimate
Estimate net income after taxes and deductions for realistic budgeting
Multiple Job Calculation
Combine multiple hourly positions to see total annual earning potential
Benefits Value Addition
Add value of benefits to compare total compensation packages
How to Use the Hourly to Salary Calculator
Enter Hourly Wage
Input your current or offered hourly pay rate. This is your base rate before overtime or any multipliers.
Set Hours Per Week
Enter how many hours you typically work each week. Standard full-time is 40 hours, but enter your actual average weekly hours.
Add Overtime (Optional)
If you regularly work overtime, enter average overtime hours per week. Calculator will apply time-and-a-half rate (1.5x your base rate).
Adjust for Time Off
Enter any unpaid vacation days or expected unpaid time off per year to get a more accurate annual salary calculation.
Select Work Weeks
Specify weeks worked per year (default 52 for year-round employment, less if you have unpaid breaks or seasonal work).
Review All Pay Periods
See your equivalent annual salary, monthly income, weekly pay, and daily earnings. Use these for budgeting and comparing job offers.
Hourly to Salary Conversion Tips
- Include Overtime Realistically: Only include consistent, reliable overtime in salary calculations. If overtime varies seasonally or isn't guaranteed, calculate base 40-hour salary separately.
- Account for Unpaid Time Off: Hourly workers often lack paid vacation - if you take 2 weeks unpaid off, use 50 weeks (not 52) in annual calculations for accurate budgeting.
- Calculate Take-Home Pay: Budget using take-home pay (about 70-75% of gross) rather than gross wages to avoid overspending and accurately plan expenses.
- Compare Total Compensation: When evaluating jobs, add benefit values (health insurance, 401(k) match, PTO) to base pay - often low-paying salaried jobs beat higher hourly rates after benefits.
- Use Average for Variable Hours: If hours vary week-to-week, track for 2-3 months to find average weekly hours, then use that average for more accurate annual salary estimates.
- Factor Geographic Cost of Living: A 'good' hourly wage varies dramatically by location - $20/hour is comfortable in many areas but inadequate in expensive coastal cities.
Frequently Asked Questions
How do I calculate annual salary from hourly wage?
The basic formula for converting hourly wage to annual salary is: Hourly Rate × Hours Per Week × Weeks Per Year = Annual Salary. For standard full-time employment, this means Hourly Rate × 40 hours × 52 weeks. For example, $20/hour × 40 × 52 = $41,600 annual salary. However, real-world calculations need refinement for overtime, unpaid time off, and variable schedules. If you work overtime regularly, account for premium pay - overtime hours are paid at 1.5× your regular rate. Unpaid time off reduces annual salary - if you take 2 weeks unpaid vacation, use 50 weeks instead of 52. Part-time workers calculate with fewer weekly hours. Variable schedules require averaging hours over several weeks. For multiple jobs, calculate each separately and sum the results. Remember this is gross income before taxes and deductions - actual take-home pay is typically 20-30% lower depending on tax bracket and benefit deductions.
Is it better to be paid hourly or salary?
Whether hourly or salary compensation is better depends on your job, work style, industry, and personal priorities. Hourly pay advantages include overtime compensation for extra hours, clear work-life separation, and straightforward pay tracking. Disadvantages include income instability if hours fluctuate, no pay for time not worked, and often limited benefits. Salary advantages include predictable stable income, typically better benefits including paid vacation and health insurance, and professional status. Disadvantages include no overtime pay, expectation of availability beyond standard hours, and fixed pay regardless of workload. Consider industry norms, whether you regularly work 50+ hours weekly (hourly with overtime often pays more), and whether you value work-life balance and predictability. Evaluate the total compensation package including benefits, not just the pay structure.
What hourly wage equals a good annual salary?
What constitutes a 'good' hourly wage depends on location cost of living, education level, experience, and industry. The national median household income is approximately $74,000 annually, equaling about $35.58/hour for one full-time worker. Entry-level positions for college graduates often target $40,000-$55,000 (roughly $19-$26/hour), while experienced professionals earn $60,000-$100,000+ ($29-$48+/hour). Geographic location dramatically affects what constitutes good pay - $25/hour might be comfortable in many Midwest cities but barely adequate in San Francisco where cost of living is 50-100% higher. Living wage calculations suggest that in most areas, a single adult needs $15-$20/hour minimum to cover basic expenses. In 2024, most financial planners suggest $25-$30/hour as minimum for comfortable middle-class lifestyle in average cost areas, more in expensive cities. Consider total compensation including benefits when evaluating wage adequacy.
How does overtime affect my annual salary?
Overtime significantly increases annual salary for hourly workers since overtime hours (beyond 40 in a workweek) must be paid at 1.5 times regular rate under the Fair Labor Standards Act. The impact depends on how many overtime hours you work consistently. For example, at $20/hour working 45 hours weekly: Regular pay = 40 hours × $20 = $800; Overtime pay = 5 hours × $30 (1.5× $20) = $150; Weekly total = $950; Annual salary = $950 × 52 = $49,400 instead of $41,600 without overtime - an extra $7,800 or 19% increase. Working 50 hours weekly (10 overtime) increases annual salary by 38%. Consider that overtime income, while attractive, comes at the cost of personal time and isn't always reliable - employers can reduce overtime hours during slow periods. Factor overtime realistically when budgeting - if consistent, include it in calculations; if sporadic, base budget on regular 40-hour weeks.
Should I include benefits when comparing hourly wage to salary?
Absolutely - benefits often represent 20-40% of total compensation value. When comparing jobs, calculate the dollar value of all benefits to determine true total compensation. Major benefits to quantify include health insurance (worth $7,000-$15,000+ annually for family coverage), retirement contributions (employer 401(k) matching typically 3-6% of salary), paid time off (worth your daily rate times days offered), and other insurance (dental, vision, life, disability). For example, Job A offers $25/hour ($52,000 annually) with no benefits. Job B offers $45,000 salary with health insurance ($8,000 value), 5% 401(k) match ($2,250), and 15 days PTO ($2,600 value). Job B's total compensation = $57,850, making it superior despite lower base pay. Always negotiate and compare on total compensation, not just headline salary or wage rate.
How much of my hourly wage will I actually take home?
Your actual take-home pay from hourly wages is typically 70-80% of gross earnings due to taxes and deductions. Federal income tax takes 10-22% for most hourly workers. FICA taxes (Social Security + Medicare) take 7.65% from every paycheck. State income tax varies from zero to 10-13%. Other deductions might include health insurance premiums, 401(k) contributions, and other benefits. Example for $20/hour worker earning $800 weekly: Federal tax ~$70, FICA $61, State tax ~$30, Health insurance $60, 401(k) $40 = ~$261 in deductions, leaving ~$539 take-home (67% of gross). To estimate your take-home, use online paycheck calculators or expect take-home to be 70-75% of gross for moderate earners. Budget based on take-home pay, not gross wages.
How do I convert my hourly wage to monthly income?
Convert hourly wage to monthly income by calculating annual salary, then dividing by 12 months. Calculate annual salary (Hourly Rate × Hours Per Week × 52 weeks), then divide by 12. For example: $20/hour × 40 hours/week × 52 weeks = $41,600 annual ÷ 12 = $3,467 monthly average. Alternative method: Multiply hourly rate by weekly hours, then multiply by 4.33 (average weeks per month). For $20/hour working 40 hours: $20 × 40 = $800 weekly × 4.33 = $3,464 monthly. Include overtime if consistent. Remember this is gross monthly income before taxes and deductions - actual take-home will be about 70-75% of this amount. For budgeting, calculate both gross and estimated net income, using the net figure for expense planning.
What if I work multiple part-time hourly jobs?
Calculate each job separately using (Hourly Rate × Weekly Hours × 52), then sum the results. For example, Job A: $18/hour × 25 hours/week × 52 = $23,400; Job B: $16/hour × 15 hours/week × 52 = $12,480; Total = $35,880 annually, or $2,990/month. Important considerations: Each employer withholds taxes as if that job is your only income, potentially under-withholding overall. You may owe taxes when filing if combined income pushes you into higher brackets. You typically won't receive benefits from part-time positions. Track all hours carefully across jobs. Consider whether combining part-time jobs yields better total compensation than one full-time position with benefits - sometimes a single full-time job with health insurance is superior to multiple part-time jobs without benefits.
Why Use Our Hourly to Salary Calculator?
Understanding your true annual earning potential from hourly wages is essential for budgeting, comparing job offers, and financial planning. Our calculator converts hourly rates to annual salary, monthly income, and all pay period equivalents, accounting for overtime, variable hours, and time off. Whether you're evaluating a job offer, planning your budget, or comparing compensation between hourly and salaried positions, accurate conversion helps you make informed career and financial decisions.