Hourly to Salary Calculator

Convert wages between hourly rates and annual salaries, factoring in overtime hours and unpaid days off.

Calculation Direction

Employment Settings

Currency

Hourly Rate

Hours Per Week

Weeks Per Year

Overtime Settings

Weekly Overtime Hours

Overtime Multiplier

Vacation & Holiday Adjustments

Paid Vacation Days / Year

Unpaid Days Off / Year

Calculated Wage Rates

Hourly Equiv. Rate

$25.00

Gross Annual Salary

$52,000.00

Adjusted Annual Salary

$51,000.00

Pay Period breakdown

Daily Earnings:$200.00

Weekly Pay:$980.77

Bi-Weekly (26/yr):$1,961.54

Semi-Monthly (24/yr):$2,125.00

Monthly Salary:$4,250.00

Vacation Impact: Unpaid days off reduce your adjusted salary by deducting the daily value (rate × average daily hours) for each day taken.

How wages translate to salaries

Converting an hourly rate to an annual salary is calculated using: Annual Gross = Hourly Rate × Hours Per Week × Weeks Per Year. Standard full-time employment schedules count 40 hours per week and 52 weeks per year.

Bi-weekly pay occurs every 2 weeks (26 times a year), while semi-monthly pay is distributed twice per month (24 times a year). Adjusted income accounts for unpaid absences.

Built and maintained by Meet Shah · Last updated 1 August 2026

What this tool is used for

Converting an hourly rate into weekly, monthly and annual pay.
Comparing a contract rate against a salaried offer.
Working out annual pay when hours vary week to week.
Estimating the income a rate produces over a year.
Checking a quoted annual figure against the hourly rate.

Frequently Asked Questions

How is an annual salary derived from an hourly rate?: Rate × hours per week × weeks per year, with 2,080 hours as the full-time convention — 40 hours × 52 weeks. So $50 an hour is $104,000 a year before tax, assuming every week is worked.
Why does 2,080 overstate what a contractor earns?: Because it assumes no unpaid time off. A salaried employee is paid through holidays and sick days; an hourly contractor is not. Four weeks unpaid leave plus public holidays takes the real figure closer to 1,880 hours, which is 10% less than the naive conversion.
What else does an hourly rate have to cover?: Everything an employer would otherwise provide: employer payroll taxes, health insurance, retirement contributions, equipment, and unbilled time spent finding work. The common rule of thumb is that contract rate should be 1.5× the equivalent salary rate, and that is a floor rather than a premium.
What is time-and-a-half worth annually?: In the US, FLSA overtime is 1.5× for hours beyond 40 in a WEEK — not a day, which is the point people most often get wrong. Ten regular overtime hours a week at $50 adds $39,000 a year, which is why overtime dominates the total for many hourly roles.
Is this gross or net?: Gross — before income tax, payroll tax, insurance or retirement deductions. Take-home is typically 25–35% lower depending on jurisdiction and filing status, so an hourly-to-salary comparison is only meaningful when both sides are quoted the same way.

Common errors and gotchas

Multiplying by 52 weeks without deducting unpaid time off, which overstates a contractor's income.
Ignoring that a contractor covers tax, insurance, equipment and gaps out of the same rate.
Assuming a fixed 40-hour week when the actual hours differ.
Comparing gross figures when the two arrangements are taxed differently.
Forgetting benefits, which have no hourly equivalent and can be a large share of a salaried package.