Hourly Rate to Salary Calculator
Convert an hourly wage into weekly, monthly, and annual income in seconds. You can also include overtime and an estimated tax rate for a quick net pay view.
Why convert an hourly rate to a salary?
If you are paid by the hour, it can be hard to compare your income to a salaried job posting. Most career sites list annual compensation, while many part-time, contract, and shift-based roles list only hourly pay. A rate per hour to salary calculator helps you quickly compare opportunities on equal terms.
This is especially useful when evaluating job offers, planning a career move, setting freelance rates, or building a realistic household budget. Instead of guessing, you can convert your wage into yearly, monthly, biweekly, and weekly income with a clear method.
The core hourly-to-salary formula
Base conversion
The standard formula is:
Annual Salary = Hourly Rate × Hours per Week × Weeks per Year
Example: If you earn $25/hour, work 40 hours per week, and work all 52 weeks:
$25 × 40 × 52 = $52,000/year
Adding overtime
If overtime applies, you can estimate a higher annual total:
Overtime Pay = Hourly Rate × Overtime Multiplier × Overtime Hours per Week × Weeks per Year
Then:
Total Annual Income = Base Annual + Overtime Pay
How to use the calculator accurately
- Use realistic weeks worked: If you take unpaid time off, reduce weeks per year from 52 to match reality.
- Separate regular and overtime hours: Keep regular weekly hours in one field and overtime hours in the overtime field.
- Use an estimated tax rate carefully: Net estimates are directional, not exact. Real take-home pay depends on local taxes, deductions, and filing status.
- Match your schedule: If you work four 10-hour days, update days per week to 4 for a better daily estimate.
Quick hourly wage reference (40 hours/week, 52 weeks/year)
- $15/hour ≈ $31,200/year
- $20/hour ≈ $41,600/year
- $25/hour ≈ $52,000/year
- $30/hour ≈ $62,400/year
- $40/hour ≈ $83,200/year
- $50/hour ≈ $104,000/year
Gross pay vs net pay
Gross pay
Gross pay is your income before taxes and deductions. Most salary discussions start here.
Net pay
Net pay is what you keep after taxes and other withholdings. Your calculator estimate helps with budgeting, but payroll deductions can vary by country, state/province, and benefits elections.
When this calculator is most useful
- Comparing an hourly contract role to a salaried full-time position
- Estimating annual income for loan applications and apartment budgeting
- Setting a freelance or consulting hourly rate
- Understanding whether overtime significantly changes your yearly earnings
- Preparing for compensation negotiations with clear numbers
Frequently asked questions
Is hourly pay better than salary?
It depends on your goals. Hourly roles may pay more during overtime-heavy periods, while salary roles can offer steadier income and benefits. The best choice depends on total compensation, workload, flexibility, and long-term growth.
How many hours is full-time?
Many employers treat 40 hours per week as full-time, but some use 35 to 37.5 hours. Always use your actual schedule when calculating.
Should I use 52 weeks every year?
Only if you are paid for all 52 weeks. If you take unpaid leave or seasonal breaks, reduce the weeks field to improve accuracy.
Final takeaway
A simple hourly-to-salary conversion can make smarter financial planning much easier. Whether you are changing careers, negotiating pay, or setting contractor rates, knowing your annualized income gives you a stronger decision-making foundation. Use the calculator above to test different scenarios and find the pay structure that best fits your life.