Hourly to Annual Salary Calculator
Enter your pay and schedule to estimate your annual, monthly, and take-home income.
Note: This is an estimate for planning purposes only. Actual paychecks can differ due to local taxes, benefits, retirement contributions, bonuses, and unpaid time off.
How to convert hourly pay to annual salary
Converting hourly wages into annual salary helps you compare job offers, set savings goals, and build a realistic budget. The basic formula is straightforward:
Annual Pay = Hourly Rate × Hours per Week × Weeks per Year
If you work overtime, add that separately using your overtime multiplier (commonly 1.5x). This gives you a better estimate of your real yearly earnings.
Why this calculator is useful
- Compare hourly roles with salaried positions.
- Estimate monthly take-home pay before accepting a new job.
- Plan debt payoff, emergency savings, and retirement contributions.
- Understand how overtime changes annual compensation.
Example calculation
Base hours only
Suppose you earn $30/hour, work 40 hours per week, and work all 52 weeks:
- $30 × 40 × 52 = $62,400 annual gross pay
Adding overtime
If you also work 5 overtime hours per week at 1.5x:
- Regular pay: $30 × 40 × 52 = $62,400
- Overtime pay: $30 × 1.5 × 5 × 52 = $11,700
- Total gross pay: $74,100
Important factors that affect take-home pay
1) Taxes
Federal, state, and local taxes can significantly reduce net income. This calculator uses an estimated tax rate, but your exact withholding will vary.
2) Pre-tax deductions
Items like 401(k) contributions, HSA contributions, and some insurance premiums reduce taxable income. They may lower your taxes but also reduce immediate cash in your paycheck.
3) Paid vs. unpaid time off
If you do not work all 52 weeks, your annual earnings will be lower. Be sure to set weeks worked per year accurately, especially for part-time or seasonal work.
4) Overtime consistency
Overtime can boost pay, but it may not be guaranteed year-round. Treat overtime-based income carefully when building fixed monthly obligations.
Quick reference: common hourly rates
- $15/hour at 40 hrs/week for 52 weeks ≈ $31,200/year
- $20/hour at 40 hrs/week for 52 weeks ≈ $41,600/year
- $25/hour at 40 hrs/week for 52 weeks ≈ $52,000/year
- $30/hour at 40 hrs/week for 52 weeks ≈ $62,400/year
Frequently asked questions
Is hourly or salary better?
It depends on your goals and industry. Hourly roles may offer overtime upside, while salaried roles often include steadier income and stronger benefits.
Does this include bonuses or commissions?
No. This tool focuses on hourly wages, schedule, overtime, deductions, and estimated taxes. You can manually add bonus income to your annual estimate if needed.
Can I use this for part-time work?
Yes. Enter your actual average hours per week and weeks worked each year for a realistic part-time projection.
Bottom line
Turning hourly wages into annual salary gives you clarity. Use the calculator above to estimate gross and net pay, then make smarter decisions about job offers, budgeting, and long-term financial planning.