Hourly to Salary Calculator

How the hourly to salary conversion works

To convert hourly pay to annual salary, multiply the hourly rate by hours worked each week and weeks worked each year. The formula is annual gross pay = hourly rate x weekly hours x working weeks. The calculator then divides annual pay by 12 for a monthly average and by 26 for a biweekly average. Weekly pay is the annual amount divided by the working weeks you entered.

Reverse mode uses hourly rate = annual salary / (weekly hours x working weeks). This can help compare a salaried offer with an hourly role, but it does not determine whether a worker is legally entitled to overtime. All displayed amounts are gross income before taxes, insurance, retirement contributions, or other deductions. Overtime premiums, bonuses, commissions, tips, and paid benefits are not included. If you have unpaid weeks, enter the number of weeks you expect to work rather than automatically using 52.

Use your real work schedule

The familiar shortcut of multiplying an hourly rate by 2,080 uses 40 hours a week for 52 weeks. It works only when that schedule matches reality. Part-time hours, seasonal work, unpaid leave, and changing weekly schedules can produce a very different annual amount. Enter the hours and paid weeks you reasonably expect instead of relying on the shortcut.

If weekly hours vary, calculate an average from several typical months. For a new job, ask whether the stated hours are guaranteed and whether time spent opening, closing, traveling, or completing required tasks is paid. A precise hourly rate is less useful when the hours assumption is unrealistic.

Gross pay is not take-home pay

These results show gross compensation. A paycheck may include federal, state, and local tax withholding, Social Security and Medicare taxes, insurance premiums, retirement contributions, union dues, garnishments, and other deductions. Two workers with the same gross salary can receive different deposits because their locations, benefits, and tax situations differ.

Monthly pay is also an average, not necessarily the amount of a specific check. Weekly and biweekly schedules create a different cash-flow pattern from semimonthly or monthly schedules. Use the pay frequency shown by the employer when building a paycheck-level budget.

Include overtime and variable income separately

An hourly employee may receive an overtime premium after working qualifying hours, but overtime rules depend on job status and applicable law. This calculator does not apply an overtime rate. If overtime is regular, estimate it separately using the expected premium and hours, then add it to base annual pay.

Bonuses, commissions, tips, shift differentials, and on-call pay can also be important. Use a conservative annual estimate when the amount changes. Comparing guaranteed base compensation separately from variable compensation makes job offers easier to evaluate.

Comparing hourly and salaried jobs

Salary alone does not show the value of a job. Compare paid leave, health coverage, retirement matching, schedule flexibility, training, commute costs, and job stability. An hourly role may pay for every additional hour, while some salaried roles expect longer weeks without extra pay. Reverse mode can show the effective hourly base rate for the schedule you expect.

For example, a $70,000 salary works out to about $33.65 per hour at 40 hours for 52 weeks. At 50 hours every week, the same salary is about $26.92 per hour. That comparison does not include the value of benefits, but it shows why expected working time matters.

Paid time off changes the comparison

Salaried employees often continue receiving normal pay during approved vacation and holidays. Hourly workers may or may not receive paid time off. If an hourly role includes paid vacation, those weeks can remain in the annual calculation. If time off is unpaid, reduce working weeks so the estimate does not overstate income.

Benefits have value even when they do not appear in base pay. Employer-paid insurance or retirement matching may offset part of a lower cash wage. When comparing offers, create one list for cash compensation and another for benefits and work conditions.

Common conversion mistakes

Do not assume every year contains 2,080 paid hours, confuse biweekly with semimonthly pay, or treat a monthly average as a guaranteed check. Avoid comparing an hourly base rate that excludes overtime with a salary figure that includes a bonus. Use the same definition of compensation on both sides.

Finally, remember that this calculator answers a gross-pay question. It does not show after-tax hourly income or the financial value of benefits. Use the result as a consistent starting point, then layer in the details that differ between jobs.