Hourly to Salary Calculator
Convert an hourly wage into an equivalent annual salary based on weekly hours worked. Use it for budgeting projections, comparing hourly contract offers to full-time salary positions, or estimating annual earnings from variable schedules.
Last updated: May 2026
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About this calculator
The calculator multiplies an hourly rate by total hours worked per year. The formula is: Annual Salary = Hourly × Hours × 52. Variables: Hourly is the gross hourly rate in dollars; Hours is the average hours worked per week. The 52 multiplier assumes 52 work weeks per year, with no unpaid time off. Edge cases: hourly workers typically don't receive paid time off, so the simple formula overstates real annual income for anyone who takes vacation or sick leave (each unpaid week costs Hourly × Hours). A worker at $25/hour for 40 hours/week taking 2 weeks unpaid vacation actually earns $25 × 40 × 50 = $50,000 vs the calculator's $52,000 — a $2,000 reduction. The formula also assumes consistent hours every week, which is unrealistic for many hourly workers (retail, hospitality, freelance) whose schedules vary. For variable-hour workers, use trailing 12-month actual hours divided by 52 to find realistic average weekly hours. Overtime is not modeled — for workers who regularly work 50+ hours with time-and-a-half overtime pay, the effective annual income is much higher than the simple formula returns, since each overtime hour pays 1.5× base rate. For accurate annual income projection: use actual recent paystub data, not theoretical maximum hours.
How to use
Example 1 — Standard hourly worker. Hourly rate $22, hours per week 40. Step 1: weekly = 22 × 40 = $880. Step 2: annual = 880 × 52 = $45,760. Verify ✓. This is the maximum theoretical annual income assuming every week worked at full hours with no unpaid leave; realistic income for an hourly worker taking 2 weeks unpaid vacation = $44,000. Example 2 — Part-time worker with overtime. Hourly $18, hours per week 30 (part-time base). Step 1: 18 × 30 × 52 = $28,080 base annual. Verify ✓. With overtime: if the worker actually averages 38 hours/week (8 hours overtime × 1.5x pay), the calculation differs: base 30 × 18 × 52 = $28,080 plus overtime 8 × 27 × 52 = $11,232 = $39,312 total — a 40% increase from base. The simple formula does not capture overtime; for accurate compensation modeling track regular hours and OT hours separately.
Frequently asked questions
Should I include overtime in this calculation?
The basic formula assumes regular hours only at the standard hourly rate. Overtime in the US is generally 1.5× base rate for hours over 40/week (FLSA non-exempt employees), with some industries and states using different rules (California: 1.5× over 8/day, 2× over 12/day; healthcare: alternative 8-and-80 rules). To include overtime in your annual estimate, calculate regular hours and overtime hours separately: Annual = (regular_hours × hourly × 52) + (overtime_hours × hourly × 1.5 × 52). For a $20/hour worker doing 40 regular + 10 overtime hours/week: regular = $20 × 40 × 52 = $41,600; overtime = $20 × 1.5 × 10 × 52 = $15,600; total = $57,200 — overtime alone adds 37%. Many workers underestimate overtime contribution to annual income; tracking weekly hour distribution accurately is essential for income planning, retirement contribution sizing, and tax planning at year-end.
How do I account for paid vs unpaid time off?
Hourly workers in the US typically receive limited or no paid time off — unlike salaried workers. If you take 2 weeks of unpaid vacation per year, your actual income is 50/52 (96%) of the simple formula's output. Some hourly workers receive: paid sick leave (varies by state — California, NY, NJ, MA mandate it; many other states don't); paid holidays (typically 6–10 per year at companies that offer them); accrued PTO that converts paid hours to non-worked paid time. To accurately project annual income: count actual paid weeks (40-week worker with 2 unpaid weeks works 50 weeks paid); multiply hourly × hours × paid_weeks. For unpaid time, subtract from the formula's output. For salaried workers converting to compare, salaried pay covers all weeks of the year regardless of work, which is why salaried positions are often (but not always) higher total income than equivalent hourly rates that look similar on paper.
What are the most common mistakes when projecting annual income from hourly?
The biggest is using maximum theoretical hours instead of actual averaged hours; few hourly workers genuinely average 40+ hours every single week. The second is forgetting overtime contribution — even modest overtime (5 hours/week at 1.5x) can add 15–20% to annual income, easily missed in simple calculations. The third is failing to account for irregular scheduling — retail, hospitality, and service workers often have hours that vary 20–40% week-to-week, and annual projections based on the best week's hours are wildly optimistic. The fourth is mixing pre-tax and post-tax figures inconsistently — the formula returns gross annual income; for budgeting, you need take-home after taxes (typically 20–32% deductions). The fifth is overlooking benefits — many hourly workers receive minimal health insurance, no retirement matching, and no paid leave, making the raw hourly figure misleading vs. salaried positions where benefits add 20–35% to total compensation. For honest comparison to salaried roles, add estimated benefit value to salaried offers when comparing to your hourly potential.
When should I NOT use this simple calculator?
Skip it for tipped positions (restaurant servers, bartenders, hair stylists, taxi/rideshare) where tips dominate base hourly income; track actual paystubs and tip declarations for realistic income projection. Avoid it for variable-rate work (commission-based sales, performance bonuses, productivity premiums) where the per-hour rate fluctuates with output. Do not use it for shift-differential work where evening, night, or weekend hours pay premium rates (healthcare, manufacturing); track regular and premium hours separately. Skip it for project-based or piecework employment where pay depends on completed units rather than time worked. Do not use it for international comparisons without converting both currency and adjusting for working norms; 35-hour weeks in France, 60+ in many Asian economies make hourly-to-annual conversions vary 25%+ from US norms. And do not use it for compensation negotiation; the hourly figure alone does not reflect benefits, advancement potential, or risk profile that distinguish different roles.
How does this calculation help when comparing job offers?
It enables apples-to-apples comparison between hourly and salaried positions on an annual-income basis. To compare a $30/hour position to a $65,000 salary: hourly × 40 × 52 = $62,400 — slightly less than the salary, but you need to adjust for: (1) Overtime potential — hourly often pays overtime, salaried (exempt) typically does not; (2) Benefits — salaried positions usually include health insurance ($8–20k value), 401k matching (4–8%), paid time off (2–5 weeks); (3) Career progression — salaried roles often have clearer advancement paths and higher long-term ceiling; (4) Work-life predictability — salaried roles may demand 50+ hours, while hourly is typically capped or paid as overtime; (5) Schedule flexibility — hourly workers often have less control over schedules and benefits eligibility. After accounting for these, a 'higher' hourly position can deliver less true value than a slightly-lower salaried role, or vice versa depending on your priorities. Use the calculator for the headline comparison, then add benefit value (20–35% of salary), overtime potential, and risk factors to find the better offer for your situation.