Hourly to Annual Salary Calculator

Convert your hourly wage to annual salary and understand your yearly income. Calculate earnings for different work hour scenarios.

What Is an Hourly to Annual Salary Calculator?

An hourly to annual salary calculator converts an hourly wage into its annual, monthly, biweekly, weekly, and daily equivalents. It accounts for actual working weeks (minus unpaid vacation), overtime hours, and overtime pay rates to give you an accurate picture of total yearly earnings.

This tool is essential when comparing job offers presented in different formats, budgeting based on hourly work, or understanding the true annual value of an hourly position.

How the Math Works

Annual Salary = Hourly Rate x Hours Per Week x Working Weeks Per Year

Overtime Pay = Hourly Rate x Overtime Multiplier x Overtime Hours x Working Weeks

Total Annual = Regular Pay + Overtime Pay

How to Use This Calculator

Enter your hourly rate.
Set hours per week (standard is 40) and weeks per year (standard is 52).
Subtract unpaid vacation weeks if applicable.
Add overtime hours and select the multiplier (1.5x or 2x).
Review all pay period breakdowns and the quick reference table.

Worked Examples

Example 1: Standard Full-Time

$25/hour, 40 hours/week, 52 weeks. Annual salary: $52,000. Monthly: $4,333. Biweekly: $2,000.

Example 2: With Overtime

$30/hour, 40 regular + 10 overtime at 1.5x, 52 weeks. Regular: $62,400. Overtime: $23,400. Total: $85,800.

Example 3: Part-Time Worker

$18/hour, 25 hours/week, 50 weeks (2 weeks unpaid). Annual: $22,500. Monthly: $1,875.

Example 4: Seasonal Worker

$22/hour, 40 hours/week, 36 weeks (seasonal). Annual: $31,680. Monthly average: $2,640.

Common Use Cases

Job offer comparison: Convert hourly offers to annual to compare with salaried positions.
Budget planning: Know your annual income to plan housing costs, savings, and spending.
Raise impact: See how a $2/hour raise translates to annual dollars ($4,160 for full-time).
Freelance rate setting: Work backward from desired annual income to determine minimum hourly rate.

Tips and Common Mistakes

Include all compensation when comparing jobs. Hourly positions often lack benefits that salaried positions include. A $25/hour position without benefits may be worth less than a $50,000 salary with health insurance worth $6,000 and retirement matching worth $3,000.

Remember that overtime is not guaranteed. Do not budget based on overtime pay unless it is consistently available. Base your financial planning on regular hours only and treat overtime as a bonus.

Account for unpaid time off. Hourly workers typically are not paid for sick days, holidays, or vacation unless their employer provides paid time off. Subtract these weeks for an accurate annual projection.

Frequently Asked Questions

How do I convert hourly pay to annual salary?

Multiply your hourly rate by the number of hours you work per week, then multiply by 52 (weeks per year). For example, $25/hour times 40 hours times 52 weeks equals $52,000 per year. If you have unpaid time off, subtract those weeks from 52 before multiplying. Overtime hours are calculated separately at the overtime rate and added to the total.

What is the standard work year calculation?

A standard full-time work year is 2,080 hours (40 hours per week times 52 weeks). To convert salary to hourly, divide annual salary by 2,080. To convert hourly to annual, multiply by 2,080. If you work fewer weeks due to unpaid leave, adjust accordingly. Most salaried employees are paid for all 52 weeks including vacation time.

How does overtime affect annual pay?

Federal law requires overtime pay at 1.5 times the regular rate for hours over 40 per week for non-exempt employees. Working 5 hours of overtime weekly at $25/hour adds $9,750 per year (5 hours x $37.50 x 52 weeks). Some employers or states require double time for hours beyond a certain threshold or on holidays.

What is the difference between gross and net annual salary?

Gross salary is your total annual earnings before any deductions. Net salary (take-home pay) is what remains after federal income tax, state income tax, Social Security (6.2%), Medicare (1.45%), health insurance premiums, retirement contributions, and other deductions. Net pay is typically 65-80% of gross pay depending on your tax bracket and deductions.

How much is $20 an hour annually?

At $20 per hour working 40 hours per week for 52 weeks, the annual salary is $41,600 before taxes. Monthly gross pay is approximately $3,467, biweekly is $1,600, and weekly is $800. After typical federal and state taxes, take-home pay is roughly $33,000 to $35,000 per year depending on your filing status and state.

Should I take a salaried or hourly position?

Salaried positions typically offer benefits like health insurance, retirement plans, and paid time off, but may expect work beyond 40 hours without extra pay. Hourly positions pay overtime for extra hours and offer clear work-life boundaries, but may have fewer benefits. Compare total compensation including benefits, not just the base pay rate or salary.