Hourly Pay & Salary Calculator
Convert your hourly rate into daily, weekly, and annual salary figures.
Earnings Breakdown
How to Calculate Your Yearly Salary from an Hourly Rate
Understanding your total compensation starts with converting your hourly wage into a broader perspective. Many employers quote pay in hourly terms, but most of our financial lives—rent, car payments, and savings goals—are managed on a monthly or annual basis.
The Basic Formula
The standard calculation for a full-time employee (40 hours per week) assumes 52 weeks in a year. The formula is:
Hourly Rate × Hours per Week × 52 weeks = Annual Gross Salary
For example, if you earn $25 per hour and work 40 hours a week:
- $25 × 40 = $1,000 per week
- $1,000 × 52 = $52,000 per year
Factoring in Overtime and Taxes
If you regularly work more than 40 hours per week, you likely qualify for "time and a half." This means your overtime rate is your hourly rate multiplied by 1.5. Our calculator accounts for this by separating standard hours from overtime hours to give you a realistic view of your take-home pay.
It is also vital to distinguish between Gross Pay (what you earn before deductions) and Net Pay (what actually lands in your bank account). Taxes, insurance premiums, and retirement contributions can reduce your gross pay by 20% to 35% depending on your location and tax bracket.
Realistic Example Calculation
Let's look at a scenario with overtime and unpaid leave:
- Hourly Rate: $30
- Standard Hours: 40/week
- Overtime: 5 hours/week at 1.5x rate ($45/hr)
- Unpaid Time Off: 2 weeks
In this case, you would work 50 paid weeks. Your weekly earnings would be ($30 × 40) + ($45 × 5) = $1,425. Your annual gross would be $1,425 × 50 = $71,250.