How to Use the Hourly to Salary Calculator
Whether you are negotiating a new job offer or planning your annual budget, converting your hourly rate into an annual salary provides clarity on your earning potential. This hourly to salary calculator allows you to quickly translate your time-based pay into monthly, bi-weekly, and annual figures.
To use this tool, follow these steps:
- Pay Rate & Type
- Select whether you are starting with an hourly, weekly, bi-weekly, or monthly rate and enter the dollar amount.
- Hours per Week
- For hourly calculations, specify how many hours you work in a typical week (standard is 40).
- Weeks per Year
- Enter the number of paid weeks in a year. Most full-time positions assume 52 weeks, including paid time off.
How the Calculation Works
The math behind converting hourly wages to an annual salary is straightforward, but it requires consistent assumptions regarding your work schedule. The primary formula used by our hourly to salary calculator is:
Annual Salary = Hourly Rate × Hours per Week × Weeks per Year
Key variables include:
- Standard Full-Time: 40 hours per week, 52 weeks per year (2,080 work hours annually).
- Part-Time: Any variation where hours per week are typically 30 or fewer.
- Unpaid Time Off: If you take two weeks of unpaid vacation, your "Weeks per Year" would be 50 instead of 52.
Hourly to Salary Example
Scenario: You are offered a job paying $28.50 per hour. You expect to work 40 hours a week and get 2 weeks of paid vacation (total 52 paid weeks).
Step-by-step calculation:
- Hourly Rate = $28.50
- Weekly Total = $28.50 × 40 hours = $1,140.00
- Annual Total = $1,140.00 × 52 weeks = $59,280.00
- Monthly Average = $59,280.00 / 12 months = $4,940.00
Common Questions
Is the result before or after taxes?
The results from this hourly to salary calculator represent "Gross Income," which is your total earnings before federal, state, and local taxes, as well as healthcare or retirement contributions, are deducted.
How many work hours are in a year?
For a standard 40-hour work week, there are 2,080 work hours in a year (40 hours × 52 weeks). If you take two weeks of unpaid leave, the total hours drop to 2,000.
Does this include overtime?
No, this basic calculation assumes a standard schedule. Overtime is usually paid at 1.5 times the hourly rate (Time-and-a-half). If you regularly work 5 hours of overtime per week, you should calculate those hours separately at the higher rate and add them to the annual total.
Salary Conversion Table
Below are common hourly rates converted to annual salary based on a 40-hour work week and 52 weeks per year.
| Hourly Wage | Annual Salary |
|---|---|
| $15.00 | $31,200 |
| $20.00 | $41,600 |
| $25.00 | $52,000 |
| $30.00 | $62,400 |
| $40.00 | $83,200 |
| $50.00 | $104,000 |