Hourly to Salary Calculator

Example Calculation

At $25 an hour for 40 hours a week and 52 weeks, you earn $25 x 40 x 52 = $52,000 a year. That is $4,333 a month, $2,000 every two weeks and $1,000 a week, before tax.

Take two weeks of unpaid leave and the year becomes 50 weeks: $50,000. Add 5 hours of overtime a week at time and a half, and the year grows to $61,750. Going the other way, a $60,000 salary on a 40-hour week works out to $28.85 an hour.

How It Works

An hourly wage and a salary describe the same thing in different units. To turn hourly pay into a yearly salary, you multiply the rate by the hours you work in a year. A full-time job of 40 hours a week for 52 weeks is 2,080 hours, so a quick rule is: hourly rate x 2,080 = yearly pay. To go the other way, divide the salary by 2,080.

The calculator lets you change the two numbers that make the biggest difference: hours per week and paid weeks per year. If you work 35 hours, or take unpaid weeks off, the result changes accordingly. In hourly mode, you can also add overtime hours and an overtime rate, which is 1.5 times your normal rate under federal law for most hourly jobs once you pass 40 hours in a week.

Remember that this is gross pay, before taxes. What you take home depends on your state, your filing status and your deductions. Use the paycheck calculator with your gross pay to see the amount that reaches your bank account, or open the paycheck calculator for your state.

When you compare an hourly job with a salaried job, look at more than the number. A salaried job often has paid time off, paid holidays and benefits that an hourly job may not, and an hourly job usually pays overtime. Convert both to a yearly figure, then compare after tax.

Formula Explained

Hourly to annual: hourly rate × hours per week × weeks per year. With overtime: add rate × overtime multiplier × overtime hours × weeks.

Annual to hourly: salary ÷ (hours per week × weeks per year). Monthly pay is annual / 12, biweekly pay is annual / 26, and weekly pay is annual / 52.

Assumptions and limits

• The default year is 40 hours a week for 52 weeks, which is 2,080 hours. Change the weeks if you take unpaid time off.
• Overtime is paid at the multiplier you enter. Federal law sets 1.5 times the regular rate for hours over 40 in a week for covered, non-exempt employees, and some states and contracts set other rules.
• All results are before tax. Paid time off, bonuses and benefits are not valued.
• Monthly is the yearly figure divided by 12, every two weeks is divided by 26 and twice a month is divided by 24.