Hourly to Salary Calculator

How to Convert Hourly Wage to Annual Salary

Converting an hourly wage to an annual salary is essential for comparing job offers, budgeting, and understanding your true earning potential. The basic formula is straightforward, but factors like overtime, unpaid leave, and variable schedules can affect the calculation.

The Basic Formula

Annual Salary = Hourly Rate × Hours Per Week × Weeks Per Year

For a standard full-time employee working 40 hours per week for 52 weeks: $25/hour × 40 hours × 52 weeks = $52,000 annually.

Adjustments for Accurate Calculations

• Unpaid time off: Deduct unpaid days to get a realistic annual figure. Each unpaid day equals 8 hours × hourly rate.
• Overtime: If you regularly work overtime, add overtime hours multiplied by your overtime rate (typically 1.5x or 2x base rate).
• Part-time schedules: Adjust the hours per week to reflect your actual working schedule.

Why This Matters for Employers

Understanding hourly to salary conversions helps HR professionals and hiring managers create accurate job postings, compare compensation across different pay structures, and ensure compliance with labor regulations regarding overtime pay.

Important Considerations

This calculator provides gross income estimates. Your take-home pay will differ based on federal, state, and local taxes, as well as benefits deductions. Always consult with a tax professional for precise net income calculations.