Hourly to Salary Calculator
Convert between hourly wages and annual salary. See exactly what your time is worth across all pay periods.
Conversion Formulas
Understanding Hourly vs. Salary Pay
Comparing hourly wages to annual salaries is essential when evaluating job offers, negotiating pay, or planning your budget. Our hourly to salary calculator instantly converts between these formats and shows you the breakdown across all common pay periods.
Whether you're considering a career change, comparing job offers, or simply curious about what your time is worth, this calculator provides the complete picture of your compensation.
Instant Conversion
Convert hourly to salary or salary to hourly in seconds.
All Pay Periods
See weekly, bi-weekly, monthly, and annual breakdowns.
Flexible Hours
Calculate for any work schedule, not just 40 hours.
PTO Adjusted
See your effective rate accounting for time off.
The Standard Calculation
The most common calculation assumes full-time work: 40 hours per week for 52 weeks per year, totaling 2,080 work hours annually. This standard is used by most employers and HR departments.
The 2,080 Rule
40 hours × 52 weeks = 2,080 hours. To convert hourly to annual, multiply by 2,080. To convert salary to hourly, divide by 2,080.
Quick Mental Math
Double your hourly wage and add three zeros for a rough annual estimate. $25/hour ≈ $50,000/year. Works surprisingly well for 40-hour weeks.
Working Days
52 weeks × 5 days = 260 work days per year before holidays and PTO. Most people actually work 230-250 days accounting for time off.
Variations
Not everyone works 40 hours. Part-time, overtime, and alternative schedules all affect the annual calculation significantly.
Pay Period Breakdown
Different employers pay on different schedules. Understanding how your pay breaks down across periods helps with budgeting and comparing offers.
| Pay Period | Frequency | Payments/Year | % of Annual |
|---|---|---|---|
| Weekly | Every week | 52 | 1.92% |
| Bi-Weekly | Every 2 weeks | 26 | 3.85% |
| Semi-Monthly | Twice a month | 24 | 4.17% |
| Monthly | Once a month | 12 | 8.33% |
| Quarterly | Every 3 months | 4 | 25% |
| Annual | Once a year | 1 | 100% |
Hourly vs. Salary: Pros and Cons
Both hourly and salaried positions have advantages and disadvantages. Understanding these helps you choose the right compensation structure for your situation.
Hourly: Overtime Pay
Hourly workers must receive overtime (1.5× pay) for hours over 40/week under FLSA. Salaried exempt employees don't receive overtime regardless of hours worked.
Salary: Predictable Income
Salaried positions offer consistent paychecks regardless of hours worked. This makes budgeting easier and provides stability during slow periods.
Hourly: Pay for Time
You're paid for every hour worked. If the company needs extra help, you earn more. If hours are cut, you earn less—no guaranteed minimum.
Salary: Benefits Package
Salaried positions often include better benefits: health insurance, retirement matching, PTO, and bonuses. Factor these into your total compensation comparison.
Hourly: Flexibility
Many hourly positions offer scheduling flexibility, ability to pick up extra shifts, or work for multiple employers simultaneously.
Salary: Career Advancement
Salaried positions are often perceived as more professional and may offer clearer paths to management and leadership roles.
True Cost of Employment
When comparing job offers, look beyond the base pay. The true hourly rate depends on actual hours worked, benefits received, and hidden costs.
Health Insurance Value
Employer-provided health insurance is worth $6,000-$20,000+ annually. A job paying $5,000 less but covering family insurance might actually pay more.
Retirement Matching
A 401(k) match is free money. If your employer matches 4% on a $60,000 salary, that's $2,400/year extra—equivalent to $1.15/hour more.
Commute Costs
Factor in gas, wear on your vehicle, parking, or transit costs. A 30-mile commute at IRS rates costs ~$10,000/year. Remote work has real value.
Actual Hours Worked
If your 'salaried' job regularly requires 50+ hours, your effective hourly rate drops significantly. $60,000 at 50 hrs/week = $23.08/hour, not $28.85.
PTO Value
Three weeks of PTO on a $60,000 salary is worth $3,461. Compare PTO policies when evaluating offers—the difference can be significant.
Professional Development
Some employers pay for certifications, conferences, or tuition. This benefit can be worth thousands and advance your career.
Living Wage Considerations
Understanding what different hourly wages mean for annual income helps evaluate whether a job meets your financial needs.
| Hourly Wage | Weekly (40 hrs) | Monthly | Annual |
|---|---|---|---|
| $7.25 (Federal Min) | $290 | $1,257 | $15,080 |
| $10.00 | $400 | $1,733 | $20,800 |
| $15.00 | $600 | $2,600 | $31,200 |
| $20.00 | $800 | $3,467 | $41,600 |
| $25.00 | $1,000 | $4,333 | $52,000 |
| $30.00 | $1,200 | $5,200 | $62,400 |
| $40.00 | $1,600 | $6,933 | $83,200 |
| $50.00 | $2,000 | $8,667 | $104,000 |
Negotiation Tips
Whether negotiating hourly wages or salary, understanding the conversion helps you advocate for fair compensation.
Know Your Number
Calculate your minimum acceptable rate in both hourly and annual terms. If you need $50,000/year minimum, don't accept below $24.04/hour.
Research Market Rates
Use sites like Glassdoor, PayScale, and Bureau of Labor Statistics to find typical rates for your role and location.
Total Compensation View
When an offer seems low, ask about the full package: benefits, bonuses, equity, PTO. A lower base with great benefits might be better.
Annual vs. Hourly Framing
Asking for $2/hour more sounds small, but it's $4,160/year. When negotiating hourly, think in annual terms. When negotiating salary, break it down hourly.
Counter Strategically
If offered $22/hour, countering with $25/hour ($52,000 vs $45,760) is a $6,240 annual difference. Know what each dollar means over the year.
Consider Hours Expected
Ask about typical work hours for salaried positions. A $70,000 salary requiring 60 hours/week ($22.44/hour) may be worse than $60,000 for 40 hours ($28.85/hour).
Part-Time and Contract Considerations
Part-time work and contract positions require different calculations and considerations than standard full-time employment.
Part-Time Math
20 hours/week at $20/hour = $20,800/year (half of full-time). But many part-time workers don't get benefits, making the effective comparison worse.
Contract Premium
Contractors typically charge 25-50% more than equivalent employees to cover self-employment tax, benefits, and business expenses.
Self-Employment Tax
Contractors pay both employer and employee portions of FICA: 15.3% on top of income tax. A $50/hour contract rate is roughly equivalent to $38-42/hour employed.
Benefits Gap
Without employer benefits, budget $500-1,500/month for health insurance, plus additional for retirement savings. This significantly affects your true rate.
Frequently Asked Questions
How do I convert hourly wage to annual salary?
Multiply your hourly wage by the number of hours you work per week, then multiply by 52 weeks. For standard full-time: hourly × 40 × 52 = annual salary. For example, $25/hour × 40 × 52 = $52,000/year.
How do I convert salary to hourly rate?
Divide your annual salary by the number of work hours per year. For standard full-time (2,080 hours): salary ÷ 2,080 = hourly rate. For example, $60,000 ÷ 2,080 = $28.85/hour.
Why is my actual take-home pay different?
Your gross pay (calculated here) is before taxes and deductions. Federal and state income tax, Social Security, Medicare, and any benefits deductions reduce your take-home pay by 20-35% typically.
Should I accept hourly or salaried work?
It depends on your situation. Hourly work offers overtime pay and sometimes more flexibility. Salaried work offers predictable income and often better benefits. Consider your financial needs, work-life balance preferences, and career goals.
What if I work more than 40 hours?
For hourly workers, hours over 40 are typically paid at 1.5× (overtime). Our calculator uses your specified hours, but remember overtime dramatically increases annual earnings. Working 50 hours/week at $20/hour earns $62,400/year, not $52,000.
How do I account for unpaid time off?
If you're hourly without paid vacation, work fewer than 52 weeks. For 2 weeks unpaid vacation, calculate with 50 weeks: $25/hour × 40 hours × 50 weeks = $50,000 (not $52,000). Our calculator can adjust for this.
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