Hourly to Salary Converter
Convert your hourly wage to an equivalent annual salary, factoring in regular hours, weekly overtime, and vacation time. Use it when comparing a job offer with an hourly rate against a salaried position.
About this calculator
Converting an hourly rate to an annual salary requires accounting for regular hours, overtime, and unpaid time off. The formula is: Annual Salary = ((hourlyRate × hoursPerWeek) + (hourlyRate × overtimeHours × overtimeMultiplier)) × (52 − vacationWeeks). Regular weekly earnings are calculated first, then overtime pay is added using the overtime multiplier (typically 1.5× for time-and-a-half). The total weekly earnings are then multiplied by the number of weeks actually worked per year — which is 52 minus any unpaid vacation weeks. This gives a realistic annual figure rather than the theoretical maximum. Note that paid vacation weeks would still count toward annual earnings; this formula assumes vacation weeks are unpaid.
How to use
Suppose your hourly rate is $20, you work 40 regular hours per week, average 3 overtime hours per week at 1.5× pay, and take 2 weeks of unpaid vacation. Step 1: Regular weekly pay = $20 × 40 = $800. Step 2: Overtime weekly pay = $20 × 3 × 1.5 = $90. Step 3: Total weekly pay = $800 + $90 = $890. Step 4: Weeks worked = 52 − 2 = 50. Step 5: Annual salary = $890 × 50 = $44,500. Your equivalent annual earnings are $44,500.
Frequently asked questions
How do overtime hours affect my equivalent annual salary calculation?
Overtime hours are compensated at a premium rate — typically 1.5× your regular hourly rate under the Fair Labor Standards Act (FLSA) for hours over 40 per week. In the formula, overtime weekly earnings equal hourlyRate × overtimeHours × overtimeMultiplier, and this is added to your regular weekly pay before multiplying by weeks worked. Even a few hours of weekly overtime can significantly increase your annual total; 3 hours at 1.5× adds over $4,000 per year at $20/hour. Always include consistent overtime when comparing your hourly compensation to a salaried offer.
What overtime multiplier should I use in the hourly to salary calculator?
The standard overtime multiplier in the U.S. is 1.5, meaning you earn 1.5× your regular rate for overtime hours — commonly called time-and-a-half. Some employers offer double time (2.0×) for holidays or hours beyond 12 in a day, particularly in states like California. If your employer offers no overtime premium (e.g., you're a salaried exempt employee), you would enter 1.0. Check your employment contract or employee handbook to confirm your specific rate before entering it into the calculator.
Why do vacation weeks reduce the annual salary estimate in this calculator?
The formula subtracts unpaid vacation weeks from the 52-week year because those are weeks where you do not earn wages. If you take two weeks of unpaid leave, you only work 50 weeks, which directly reduces your annual earnings. If your vacation is paid (as is common for salaried employees), your weekly pay continues during that time and you would enter 0 vacation weeks. Properly accounting for unpaid time off gives a more accurate picture of true annual earnings and is especially important when comparing hourly contracts with different leave policies.