Easily convert your hourly wage to an annual salary, monthly pay, or weekly paycheck. Whether you're negotiating a new job offer, planning your budget, or just curious about your yearly earnings, our hourly to salary calculator provides instant, accurate conversions based on your work schedule.
How to Use This Calculator
Converting your pay rate is simple. Follow these steps to get a breakdown of your earnings:
- Enter Your Hourly Rate: Input your gross hourly wage (before taxes). For example, if you make $25 an hour, enter "25".
- Adjust Hours Per Week: The default is set to 40 hours (standard full-time). If you work part-time or overtime, adjust this number accordingly.
- Set Weeks Per Year: Most full-time jobs pay for 52 weeks a year. If you are a contractor or take unpaid leave, you can reduce this number (e.g., 50 weeks).
- View Your Results: Click "Convert to Salary" to see your estimated Annual, Monthly, Bi-Weekly, Weekly, and Daily pay.
Understanding the Math: Hourly to Salary Formula
The calculation for converting hourly pay to a yearly salary is straightforward, but it's helpful to understand the underlying assumptions. Most calculations rely on the standard work year, which consists of 52 weeks. By multiplying your hourly rate by the total number of hours worked in a year, you can easily determine your annual gross income.
The Standard Formula
For a standard full-time employee working 40 hours a week for 52 weeks a year, the formula is:
Example: If you earn $30 per hour:
$30 × 40 hours × 52 weeks = $62,400 per year.
The "2080 Hours" Rule
A common shortcut used by HR professionals and payroll departments is the "2080 hours" rule. This assumes a standard 40-hour work week for 52 weeks (40 × 52 = 2080).
- To find your annual salary: Multiply your hourly rate by 2,080.
- To find your hourly rate: Divide your annual salary by 2,080.
Quick Conversion Table
Here is a quick reference guide for common hourly wages and their equivalent annual salaries (based on a 40-hour work week).
| Hourly Rate | Annual Salary | Monthly Pay | Weekly Pay |
|---|---|---|---|
| $15.00 | $31,200 | $2,600 | $600 |
| $20.00 | $41,600 | $3,467 | $800 |
| $25.00 | $52,000 | $4,333 | $1,000 |
| $30.00 | $62,400 | $5,200 | $1,200 |
| $40.00 | $83,200 | $6,933 | $1,600 |
| $50.00 | $104,000 | $8,667 | $2,000 |
| $75.00 | $156,000 | $13,000 | $3,000 |
Factors That Affect Your Take-Home Pay
While this calculator estimates your gross income, your actual "take-home" pay (net income) will be lower due to taxes and deductions. It is crucial to understand the difference between what you earn on paper and what actually lands in your bank account. Several key factors play a role in reducing your final paycheck amount, ranging from mandatory government taxes to voluntary benefits that you choose to enroll in.
1. Taxes
Taxes are the single biggest factor that reduces your paycheck. In the United States, your employer is legally required to withhold several types of taxes from your earnings before they even hit your bank account. Understanding these can help you better estimate your actual spendable income.
- Federal Income Tax: This is a progressive tax, meaning the more you earn, the higher percentage you pay. Rates range from 10% to 37% depending on your tax bracket. You can find the latest brackets on the IRS website.
- State Income Tax: Most states levy their own income tax, which can be a flat rate or progressive. Some states, like Florida and Texas, have no state income tax at all.
- FICA Taxes: These are mandatory contributions for Social Security (6.2%) and Medicare (1.45%), totaling 7.65% of your gross pay.
For a more detailed breakdown of taxes, check out our Federal Tax Calculator.
2. Benefits and Deductions
Beyond mandatory taxes, you may have other deductions taken out of your paycheck. While these reduce your immediate take-home pay, they often pay for valuable benefits that save you money in the long run or help you build wealth for the future. Common examples include:
- Health Insurance: Medical, dental, and vision premiums are often deducted pre-tax, lowering your taxable income.
- Retirement (401k): Contributions to a 401(k) or 403(b) are typically tax-deferred, meaning you don't pay taxes on that money until you withdraw it in retirement.
- FSA/HSA: Flexible Spending Accounts and Health Savings Accounts allow you to set aside pre-tax dollars for qualified medical expenses.
3. Unpaid Time Off
One of the biggest differences between hourly and salaried employees is how time off is handled. Salaried employees usually receive Paid Time Off (PTO) for vacations and sick days. Hourly workers, however, often only get paid for the hours they actually work. If you take a two-week unpaid vacation, your annual income will be based on 50 weeks of work rather than 52, significantly impacting your total yearly earnings.
Hourly vs. Salary: Pros and Cons
Deciding between an hourly wage and a fixed salary is a common dilemma. Here are some key differences to consider.
Hourly Wage
- Overtime Pay: You are typically eligible for 1.5x pay for hours over 40/week.
- Flexibility: Easier to adjust hours or work part-time.
- Holiday Pay: Often get paid extra for working holidays.
- Income Fluctuation: Paychecks can vary if hours are cut.
Annual Salary
- Stability: Consistent paycheck regardless of hours worked.
- Benefits: Often come with better benefits packages (PTO, insurance).
- No Overtime: Exempt employees may work long hours without extra pay.
- Career Growth: Often associated with higher-level positions.
Common Scenarios
To help you better understand how different factors can influence your total annual income, let's look at a few common real-world scenarios. These examples demonstrate how overtime, unpaid time off, and variable schedules can change the math.
Scenario 1: The Overtime Boost
Sarah works in a warehouse and earns a base rate of $20 per hour. Her base annual salary for a standard 40-hour week would be $41,600. However, during the busy season, she consistently works 5 hours of overtime every week. Since overtime is paid at "time and a half" ($30/hour), this extra effort significantly boosts her total earnings.
Overtime rate = $20 × 1.5 = $30/hour.
Weekly Overtime Pay = 5 hours × $30 = $150.
Annual Overtime Pay = $150 × 52 = $7,800.
Total Annual Income: $41,600 + $7,800 = $49,400.
Scenario 2: The Independent Contractor
Mike is a freelance graphic designer who bills his clients $60 per hour. While this hourly rate is high, he doesn't get paid for holidays or vacations. He plans to take 4 weeks of unpaid time off throughout the year for travel and holidays. This means he is only billing for 48 weeks instead of the standard 52.
Weeks worked = 52 - 4 = 48 weeks.
Annual Income = $60 × 40 hours × 48 weeks = $115,200.
The Impact of Inflation on Your Hourly Wage
When converting your hourly wage to an annual salary, it is also important to consider the "real value" of that money over time. With inflation, the purchasing power of your dollar decreases. A $20/hour wage in 2025 buys significantly less than it did in 2020.
Real Wage Calculation: To maintain your standard of living, your hourly rate should ideally increase at least at the rate of inflation. If inflation is 3% and you don't get a raise, you effectively took a 3% pay cut. Use our Inflation Calculator to see how your current wage compares to historical values.
Negotiating Your Hourly Rate
Knowing the annual equivalent of your hourly rate gives you a powerful advantage during salary negotiations. If an employer offers you $20/hour, you immediately know that is roughly $41,600 a year. If your target salary is $50,000, you can quickly reverse the math ($50,000 / 2080 = $24.04/hour) and counter-offer with a precise number.
Tips for Negotiation
- Focus on Value: Explain what unique skills or experience you bring to the table that justifies a higher rate.
- Research Market Rates: Use sites like Glassdoor or Payscale to find the average hourly wage for your position in your city.
- Ask for a Review: If they can't meet your number now, ask for a performance review in 3 or 6 months with the possibility of a raise.