Hourly Rate to Salary Calculator
Convert your hourly wage into weekly, monthly, and annual income.
Your Salary Breakdown (Gross)
| Period | Amount |
|---|---|
| Daily Income | – |
| Weekly Income | – |
| Bi-Weekly Income (Every 2 Weeks) | – |
| Monthly Income (Average) | – |
| Annual Salary | – |
How to Convert Hourly Wage to Annual Salary
Understanding how your hourly rate translates into a yearly salary is crucial for financial planning, negotiating job offers, or applying for loans. While the calculation seems simple, slight variations in work schedules can impact the final numbers.
The standard formula used by most employers and financial institutions assumes a full-time schedule. Here is the basic logic used in our calculator:
- Weekly Pay: Hourly Rate × Hours Per Week
- Annual Pay: Weekly Pay × Weeks Per Year (Standard is 52)
- Monthly Pay: Annual Pay ÷ 12
Common Work Schedules and Salary
When calculating your salary, it is important to input the correct number of hours. Here are common scenarios:
- Standard Full-Time: 40 hours per week (8 hours/day, 5 days/week).
- 37.5 Hour Work Week: Common in some corporate environments (7.5 hours/day, 5 days/week).
- Part-Time: Schedules vary significantly, often between 15 to 30 hours per week.
Why Does the Monthly Calculation Look Different?
A common mistake is simply multiplying weekly pay by 4 to get monthly pay. This is inaccurate because most months have more than exactly 4 weeks (4 weeks × 12 months = 48 weeks, leaving 4 weeks unaccounted for).
To get an accurate monthly average, you must calculate the Annual Salary first, and then divide by 12. This accounts for months that have 30 or 31 days.
Gross vs. Net Pay
Please note that this calculator provides your Gross Pay. This is the amount before any deductions are made. Your actual take-home pay (Net Pay) will be lower due to:
- Federal and State Income Taxes
- Social Security and Medicare (FICA)
- Health Insurance Premiums
- Retirement Contributions (401k)
A general rule of thumb for estimating net pay is to deduct approximately 25-30% from your gross pay, though this varies greatly based on your location and tax bracket.