Hourly to Salary Calculator
Convert your hourly wage to an annual salary. See how overtime and unpaid time off impact your total yearly earnings.
Hourly Details
Estimated Annual Salary
Paycheck Breakdown
Income Composition
Key Insights
- $25/hour at 40 hours/week is approximately $52,000/year.
- You get paid for approximately 10 days per year without working, effectively boosting your hourly rate for actual work done.
- Your effective hourly rate for actual hours worked is $26.
How It Works
Converting an hourly wage to an annual salary is a straightforward calculation that helps you understand your long-term earnings potential. Whether you're comparing job offers or planning a budget, knowing your annual income is essential.
The basic formula for a standard full-time job is:
Annual Salary = Hourly Wage × Hours per Week × 52
Why 52? There are 52 weeks in a year.
Why 2,080 hours? A standard full-time employee works 40 hours per week.
40 hours × 52 weeks = 2,080 working hours per year.
Example: If you make $25/hour:
$25 × 2,080 hours = $52,000 per year.
However, real life often involves overtime, unpaid time off, and bonuses, which this calculator accounts for to give you a more accurate number.
Understanding Your Hourly Wage as an Annual Salary
Many job postings list compensation as an hourly rate, while others list an annual salary. Being able to quickly convert between the two is a crucial skill for financial planning and salary negotiation.
Quick Conversion Table (Full-Time)
| Hourly Wage | Annual Salary (2,080 hrs) | Monthly Pay | Weekly Pay |
|---|---|---|---|
| $15.00 | $31,200 | $2,600 | $600 |
| $20.00 | $41,600 | $3,467 | $800 |
| $25.00 | $52,000 | $4,333 | $1,000 |
| $30.00 | $62,400 | $5,200 | $1,200 |
| $40.00 | $83,200 | $6,933 | $1,600 |
| $50.00 | $104,000 | $8,667 | $2,000 |
The Impact of Overtime
One of the biggest advantages of being an hourly employee is eligibility for overtime pay. In the US, the Fair Labor Standards Act (FLSA) generally requires employers to pay 1.5 times your regular hourly rate for any hours worked over 40 in a workweek.
Even a small amount of overtime can drastically change your annual income.
Example: You earn $20/hour.
Base Salary: $20 x 2,080 = $41,600.
With 5 hours overtime/week:
Overtime Rate = $30/hr ($20 x 1.5).
Weekly Overtime Pay = $30 x 5 = $150.
Annual Overtime Pay = $150 x 52 = $7,800.
Total Salary: $41,600 + $7,800 = $49,400.
That's an 18% increase in salary just from working 5 extra hours a week!
Unpaid Time Off vs. Paid Time Off (PTO)
When calculating your salary, it's critical to know if your time off is paid or unpaid.
- Paid Time Off (PTO): Includes vacation days, sick days, and holidays where you receive your normal paycheck despite not working. These days count toward your 2,080 hours in terms of pay.
- Unpaid Time Off: If you don't work, you don't get pay. If you plan to take 2 weeks of unpaid vacation a year, you are only working (and getting paid for) 50 weeks.
Calculation: $25/hr x 40 hrs x 50 weeks = $50,000 (instead of $52,000).
Hourly vs. Salary: What to Consider
When Hourly is Better
- You frequently work more than 40 hours a week (Overtime!).
- You want to be paid for every minute you work.
- You value a clear separation between work and personal time.
When Salary is Better
- You want a predictable, stable paycheck every month.
- You want access to better benefits packages (often tied to salaried roles).
- You value flexibility (e.g., leaving early for a doctor's appointment without losing pay).
- You are in a management role where hours fluctuate but output matters more.