Hourly to Salary Calculator

To convert an hourly wage to an annual salary, multiply your hourly rate by the number of hours you work per week, then multiply by 52 weeks. For example, if you earn $20 per hour and work 40 hours per week, your annual salary is $20 × 40 × 52 = $41,600. If you work 45 hours per week, the same $20 rate yields $46,800 per year. This calculation assumes you work every week without unpaid time off. If you take two weeks of unpaid vacation, subtract 80 hours (2 weeks × 40 hours) from your annual hours, which would reduce your effective annual salary to $40,000. Many people use an hourly to salary calculator to quickly see this conversion and compare it to a salaried offer. Remember that salaried positions often include benefits like health insurance and retirement contributions, which can add 20-30% to your total compensation. To estimate your take-home pay after taxes, use the paycheck calculator on our site, which factors in federal and state withholding based on your location and filing status.

The formula is: Annual Salary = Hourly Rate × Hours per Week × 52. For instance, a $15 per hour job with a 40-hour workweek gives $15 × 40 × 52 = $31,200 per year. If you work 50 hours per week, the annual salary becomes $39,000. This formula assumes you are paid for every hour worked and that you work all 52 weeks. However, if your employer offers paid time off, your annual salary remains the same even if you work fewer weeks. For part-time workers, say 25 hours per week at $18 per hour, the annual salary is $23,400. If you receive overtime pay at 1.5 times your regular rate for hours over 40, the calculation changes. For example, at $15 per hour with 45 hours per week, you earn $15 × 40 = $600 for regular hours plus $22.50 × 5 = $112.50 for overtime, totaling $712.50 per week, or $37,050 per year. Use our salary calculator to input different scenarios and see how overtime or part-time hours affect your annual income.

A standard full-time work year consists of 2,080 hours, calculated as 40 hours per week × 52 weeks. This is the baseline used by the U.S. government and many employers for salary conversions. If you work 45 hours per week, your annual hours are 2,340; for 50 hours, it's 2,600. Part-time workers at 20 hours per week have 1,040 annual hours. These figures assume you work every week of the year, including holidays, but many salaried employees receive paid holidays and vacation, so their actual worked hours are lower. For example, if you get 10 paid holidays and 10 vacation days, you work 2,080 − 160 = 1,920 hours, yet your salary remains based on 2,080 hours. This means your effective hourly rate is higher than the nominal rate. When using an hourly to salary calculator, always input your actual weekly hours to get an accurate hourly equivalent. If you want to see how unpaid time off affects your annual income, adjust your weekly hours or use the payroll calculator to factor in deductions.

Gross pay is your total earnings before any deductions, while net pay is the amount you actually take home after taxes and other withholdings. For example, if your annual salary is $60,000 and you work 40 hours per week, your gross hourly rate is $28.85. However, after federal income tax, Social Security (6.2%), Medicare (1.45%), and state taxes, your net pay might be around $48,000 per year, or $23.08 per hour. The difference—$12,000—covers taxes and deductions like health insurance premiums or 401(k) contributions. Your net pay is what you use for budgeting and spending. To estimate your net pay, you need to consider your filing status, dependents, and state of residence. For instance, a single filer in Texas (no state income tax) earning $60,000 might take home about $50,000, while the same salary in California could yield $46,000 due to state taxes. Use our paycheck calculator to get a more precise net pay estimate based on your specific situation. Understanding both figures helps you negotiate salaries and plan your finances accurately.

Overtime hours can significantly change your effective hourly rate, especially if you are paid a salary but work more than 40 hours per week. For salaried employees who are exempt from overtime, working extra hours reduces your effective hourly rate. For example, a $70,000 salary at 40 hours per week equals $33.65 per hour. If you regularly work 50 hours per week, your effective rate drops to $26.92 per hour. On the other hand, if you are non-exempt and receive 1.5 times your regular rate for overtime, your gross pay increases. Suppose you earn $20 per hour and work 45 hours in a week. You earn $20 × 40 = $800 for regular hours plus $30 × 5 = $150 for overtime, totaling $950 for the week. That's an effective rate of $21.11 per hour. Over a year, this adds up: $950 × 52 = $49,400, compared to $41,600 without overtime. Use our hourly to salary calculator to see how different weekly hours affect your annual equivalent. If you want to factor in overtime pay, adjust your annual salary input to reflect your total gross earnings including overtime, then divide by total hours worked.

Yes, this calculator works for part-time and freelance work by adjusting the weekly hours input. For part-time employees, enter your actual weekly hours, such as 20 or 25. If you earn $25,000 per year working 20 hours per week, your hourly equivalent is $25,000 / (20 × 52) = $24.04 per hour. For freelancers, you can use the calculator to set your hourly rate by entering your desired annual salary and estimated billable hours per week. Keep in mind that freelancers often work non-billable hours for marketing, invoicing, and admin tasks, so your billable hours might be only 60-70% of your total work hours. For example, if you want to earn $60,000 per year and plan to work 40 hours per week but only 25 are billable, your hourly rate should be $60,000 / (25 × 52) = $46.15 per hour, not $28.85. This ensures you cover taxes, benefits, and overhead. Freelancers also pay self-employment tax (15.3% for Social Security and Medicare) plus income tax, so your take-home pay will be lower than a salaried employee's. Use our payroll calculator to estimate your quarterly taxes and net income.