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Hourly to Salary Calculator

Convert between hourly wages and annual salary. See exactly what your time is worth across all pay periods.

Conversion Formulas

Hourly to Annual
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Annual to Hourly
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Common Work Schedules:

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.

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Instant Conversion

Convert hourly to salary or salary to hourly in seconds.

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All Pay Periods

See weekly, bi-weekly, monthly, and annual breakdowns.

Flexible Hours

Calculate for any work schedule, not just 40 hours.

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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.

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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.

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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.

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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.

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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 PeriodFrequencyPayments/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.

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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.

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Salary: Predictable Income

Salaried positions offer consistent paychecks regardless of hours worked. This makes budgeting easier and provides stability during slow periods.

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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.

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Salary: Benefits Package

Salaried positions often include better benefits: health insurance, retirement matching, PTO, and bonuses. Factor these into your total compensation comparison.

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Hourly: Flexibility

Many hourly positions offer scheduling flexibility, ability to pick up extra shifts, or work for multiple employers simultaneously.

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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.

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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.

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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.

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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.

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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.

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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 WageWeekly (40 hrs)MonthlyAnnual
$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.

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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.

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Research Market Rates

Use sites like Glassdoor, PayScale, and Bureau of Labor Statistics to find typical rates for your role and location.

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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.

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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.

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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.

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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.

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Contract Premium

Contractors typically charge 25-50% more than equivalent employees to cover self-employment tax, benefits, and business expenses.

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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.

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Benefits Gap

Without employer benefits, budget $500-1,500/month for health insurance, plus additional for retirement savings. This significantly affects your true rate.

How to use this hourly to salary calculator

  1. Pick the conversion direction at the top: Hourly → Salary if you know your hourly wage, or Salary → Hourly if you know your annual salary.
  2. Enter your Hourly Wage ($) or Annual Salary ($) in the highlighted field. Use the gross (pre-tax) amount your employer quotes, not your take-home pay.
  3. Select a preset under Common Work Schedules, or type custom values into Hours Per Week and Weeks Per Year — use 50 weeks if you take two unpaid weeks off.
  4. Click Calculate to see the matching rate plus daily, weekly, bi-weekly, semi-monthly, monthly, and quarterly equivalents.
  5. Compare offers by re-running the calculator with each scenario's hours and weeks — the same $60,000 salary is worth very different hourly rates at 40 vs. 50 hours per week.

Examples

Standard 40-hour week at $25/hour

A full-time non-exempt employee earning $25/hour on a standard 40-hour schedule with no unpaid leave wants to know their annual gross salary.

ResultAnnual salary $52,000. Weekly $1,000. Bi-weekly $2,000. Monthly about $4,333. Total of 2,080 paid hours per year.

The calculator multiplies $25 × 40 × 52 = $52,000. Weekly is hourly × hours-per-week ($25 × 40 = $1,000); monthly is the annual divided by 12 ($52,000 ÷ 12 ≈ $4,333.33). This is the textbook 2,080-hour year used by most HR departments and the federal government for salary conversions.

Salary offer back-solved to hourly

A candidate is offered a $75,000/year salaried role but is told it typically requires 45 hours per week. They want to compare it to their current $32/hour contractor rate.

ResultEffective hourly $32.05. Weekly $1,442. Monthly $6,250. Total of 2,340 worked hours per year — 260 more than a standard year.

Switch the calculator to Salary → Hourly. It divides $75,000 by (45 × 52) = 2,340 hours, returning about $32.05/hour. The headline salary is bigger, but at 45 expected hours the effective rate is essentially flat versus the $32 contract — and the salaried role usually has no overtime premium under FLSA exempt status.

Part-time worker with two unpaid weeks

A 30-hour-per-week part-time employee earning $22/hour takes two unpaid weeks off each year and wants the realistic annual figure, not the 52-week ideal.

ResultAnnual salary $33,000 (vs. $34,320 at a full 52 weeks). Weekly $660. Monthly $2,750. Total of 1,500 paid hours per year.

Lower Weeks Per Year from 52 to 50 to reflect the unpaid time off: $22 × 30 × 50 = $33,000. The $1,320 gap between this and the 52-week figure is exactly what those two unpaid weeks cost in gross pay — useful when negotiating for paid leave or a higher hourly rate to offset it.

How it works

In Hourly → Salary mode, the calculator multiplies your Hourly Wage by Hours Per Week by Weeks Per Year. The default 40 hours × 52 weeks gives the standard 2,080-hour work year that the U.S. federal government uses for civilian pay conversions. Some agencies use 2,087 hours to average leap years over a 28-year cycle; for typical private-sector budgeting, 2,080 is close enough that the difference is under 0.4%.

In Salary → Hourly mode, the same formula is inverted: Hourly=Annual/(Hours/Week×Weeks/Year)\text{Hourly} = \text{Annual} / (\text{Hours/Week} \times \text{Weeks/Year}). This is the gross hourly rate before any tax, benefit, or deduction — it's the number to use when comparing wage offers apples-to-apples, not your take-home rate.

All the breakdown periods are derived from the annual figure: weekly is hourly × hours-per-week, bi-weekly is weekly × 2, semi-monthly is annual ÷ 24, monthly is annual ÷ 12, and quarterly is annual ÷ 4. Note that bi-weekly (every two weeks, 26 paychecks) and semi-monthly (twice a month, 24 paychecks) are different — most U.S. employers use one or the other.

Weeks Per Year is the lever for paid time off. If you take two weeks of unpaid leave, set it to 50; if all your PTO is paid, leave it at 52 because you're being paid for those weeks even though you're not at work. This calculator computes gross compensation only — federal income tax, FICA (Social Security and Medicare at 7.65% combined for employees), state tax, and benefit deductions typically reduce take-home pay by 20%–35% depending on your bracket and state.

When to use this calculator

  • Comparing an hourly job to a salaried offer. Convert both to the same unit — usually annual gross — using each role's realistic hours per week, including expected overtime for the salaried role.
  • Budgeting from an hourly wage. See your monthly and bi-weekly equivalents to build a household budget against the same cadence as your paychecks.
  • Negotiating a raise. Translate a $2/hour ask into its $4,160/year equivalent — or a $5,000 salary bump into roughly $2.40/hour — so the number you propose lands the same way it feels.
  • Setting a freelance or contractor rate. Back-solve from your target annual income. If you want $80,000/year and expect 1,500 billable hours, you need to charge about $53/hour before factoring in self-employment tax and benefits.
  • Evaluating part-time or reduced-hours work. Switch Hours Per Week to 20, 25, or 32 to see how a schedule change affects gross income before deciding to cut back.
  • Checking minimum-wage or living-wage thresholds. Convert local hourly minimums to an annual figure to see whether a full-time job at that rate clears your area's living-wage estimate.

Common mistakes

  • MistakeConfusing bi-weekly with semi-monthly pay.
    FixBi-weekly pays every two weeks for 26 checks per year; semi-monthly pays twice a month for 24 checks. The per-check amounts differ — $52,000/year is $2,000 bi-weekly but $2,167 semi-monthly.
  • MistakeComparing a salaried job's gross to an hourly job's take-home.
    FixAlways compare gross to gross. This calculator returns gross pay; subtract taxes and deductions only after you've made an apples-to-apples comparison.
  • MistakeForgetting that exempt salaried employees don't earn overtime.
    FixA $65,000 salary at 50 hrs/week ($25/hour) is only worth a $20/hour hourly job that does pay 1.5× for the 10 weekly OT hours, which would gross $54,600. Run both scenarios before accepting.
  • MistakeLeaving Weeks Per Year at 52 when you take unpaid leave.
    FixIf you take two unpaid weeks, use 50 weeks. The default of 52 only matches reality if all your time off is paid (PTO) or if you genuinely work every week of the year.
  • MistakeUsing 2,080 hours when your employer uses 2,087.
    FixFederal civilian and some large employers use 2,087 hours to amortize leap years. The difference is small (~0.34%) but matters for back-pay calculations or to match an offer letter's quoted hourly rate exactly.
  • MistakeTreating the freelance hourly rate as equivalent to an employed rate.
    FixA $50/hour contractor pays the full 15.3% self-employment tax (vs. 7.65% for an employee), plus their own health insurance and retirement. The employed equivalent is typically 25%–35% less, around $35–$38/hour.

Frequently asked questions

How do I convert hourly wage to annual salary?

Multiply your hourly wage by hours per week, then by weeks per year. For standard full-time work: hourly × 40 × 52 = annual salary. Example: $25/hour × 40 × 52 = $52,000/year. For a quick estimate, multiply hourly × 2,080 (the standard work-year hours).

How do I convert salary to hourly rate?

Divide your annual salary by total work hours per year. For standard full-time (2,080 hours): salary ÷ 2,080 = hourly rate. Example: $60,000 ÷ 2,080 = $28.85/hour. Adjust the divisor if your real schedule is more or fewer than 40 hours a week.

How do I include overtime in this calculator?

The widget computes straight-time pay only, so do the overtime add-on separately. Under the FLSA, non-exempt workers earn 1.5× their regular rate for hours over 40 in a week. For 80 hours of OT per year at $25/hour: 80 × $37.50 = $3,000 on top of the $52,000 base, for a $55,000 total. A few states (notably California) also require daily overtime after 8 hours.

Does this calculator account for taxes?

No — it returns gross pay only. Your take-home is reduced by federal income tax, FICA (7.65% for Social Security and Medicare), state and local income tax, and benefit deductions. Combined, these typically take 20%–35% off the top depending on bracket and state. For after-tax estimates, run the gross figure through a paycheck calculator.

How do unpaid days off affect the calculation?

Unpaid time reduces your effective annual income. Lower Weeks Per Year to reflect it: two unpaid weeks means 50 weeks, not 52. Example: $25/hour × 40 × 50 = $50,000 (versus $52,000 if all weeks were paid). Paid PTO does not require this adjustment because you're still being paid during those weeks.

What's the difference between 2,080 and 2,087 hours per year?

2,080 is the simple 40 × 52 standard used by most private employers and HR software. 2,087 is the figure the U.S. Office of Personnel Management uses for federal civilian pay; it averages leap years over a 28-year cycle (2,087.143 rounded). The gap is about 0.34% — small for budgeting but meaningful for federal back-pay calculations.

How do I compare a salary offer to my current hourly rate?

Switch to Salary → Hourly mode, enter the offered salary, and use the realistic hours per week the new role expects, not 40 by default. A $70,000 offer at 40 hours is $33.65/hour; at 50 expected hours it's only $26.92/hour. If the salaried role is exempt, those extra hours come without overtime, so the comparison must be based on total expected hours.

What's the difference between exempt and non-exempt salaried employees?

Non-exempt workers (hourly or salaried) are entitled to FLSA overtime at 1.5× for hours over 40/week. Exempt workers — typically salaried at or above the federal threshold and meeting duties tests for executive, administrative, professional, or outside-sales roles — do not receive overtime. Most salaried office workers in the U.S. are exempt, which is why a salaried job's effective hourly rate can be much lower than its headline number suggests.

How should I set my freelance or contractor hourly rate?

Start with your target gross income, then add roughly 25%–50% to cover self-employment tax (15.3% FICA), health insurance, retirement contributions, paid time off you'll have to fund yourself, and unbillable hours like admin and sales. A common rule of thumb: a $50/hour contractor rate is roughly equivalent to a $35–$38/hour employee rate with full benefits.

Why are bi-weekly and semi-monthly amounts different?

Bi-weekly pays every two weeks — 26 checks a year — so each check is annual ÷ 26. Semi-monthly pays twice a month (e.g., the 1st and 15th) — 24 checks a year — so each check is annual ÷ 24. On $52,000/year that's $2,000 bi-weekly versus $2,166.67 semi-monthly. Total annual pay is identical; the per-check size and timing differ.

Should I take the higher-paying job with longer hours?

Convert both to an effective hourly rate using realistic weekly hours, then compare. A $75,000 salary at 50 hrs/week works out to $28.85/hour; a $60,000 salary at 40 hrs/week is the same $28.85/hour. The dollar headline favors the first job; the per-hour value is identical, and the 40-hour role buys back 500 hours of your year.

Does this calculator work for part-time schedules?

Yes. Set Hours Per Week to your actual schedule — 20, 25, 30, or any number — and the math scales linearly. For example, $22/hour × 30 hours × 52 weeks = $34,320/year. Use one of the part-time presets to fill the schedule fields quickly.

Sources

Methodology

This calculator converts between hourly wages and annual salary using Annual = Hourly × Hours/Week × Weeks/Year, and its inverse Hourly = Annual / (Hours/Week × Weeks/Year). The default 40 × 52 = 2,080 hours follows the standard private-sector work year (federal civilian pay uses 2,087). All derived periods come from the annual figure: weekly = hourly × hours-per-week, bi-weekly = weekly × 2, semi-monthly = annual ÷ 24, monthly = annual ÷ 12, quarterly = annual ÷ 4. Results are gross — pre-tax and pre-deduction — and do not include FLSA overtime (1.5× over 40 hours/week), self-employment tax, or benefits.

Pro Tips

  • Bookmark this calculator for quick access in the future
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  • Try different scenarios to compare outcomes
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