Hourly to Salary Calculator

The formulas

Annual = Hourly x Hours per week x Paid weeks

Monthly = Annual / 12

Hourly = Annual / (Hours per week x Paid weeks)

With overtime: Annual = (Hourly x Regular hours x Weeks) + (Hourly x 1.5 x Overtime hours x Weeks)

Worked example

$25 per hour, 40 hours a week, 50 paid weeks:

Annual: $25 × 40 × 50 = $50,000
Monthly: $50,000 ÷ 12 = $4,166.67
Biweekly: $50,000 ÷ 26 = $1,923.08
Weekly: $25 × 40 = $1,000
Daily (8 hours): $200

Using 52 weeks instead of 50 would have produced $52,000 — a $2,000 overstatement. That gap is exactly the unpaid time off most people forget to subtract.

Hourly versus salary: what changes

Factor	Hourly	Salary
Pay per hour worked	Fixed and visible	Falls as hours rise
Overtime	Usually paid at 1.5x	Usually unpaid
Slow weeks	Income drops	Income holds
Time off	Not paid unless stated	Often paid
Predictability	Low	High

The trap: a $60,000 salary sounds better than $28 an hour, until you notice the salary expects 50 hours a week and the hourly job is 40. $60,000 over 2,500 hours is $24 an hour — lower than the hourly job.

Common mistakes

Using 52 weeks. Almost nobody is paid for 52 full weeks. Use 48 to 50 to reflect reality.
Ignoring unpaid overtime in salary comparisons. Convert the salary to an effective hourly rate using the hours you will actually work.
Forgetting the value of benefits. Health cover, pension matching and paid leave can add 20 to 30 percent to a package. Add them before comparing.
Comparing net pay across different tax situations. Compare gross to gross.
Assuming a raise is a raise. A raise that comes with 10 more hours a week may lower your effective hourly rate.

Frequently asked questions

How many weeks should I use?

If you are paid only for hours worked, use the number of weeks you actually work, typically 48 to 50. Using 52 overstates annual pay because it ignores unpaid holidays and sick days.

Is a salary always better than hourly?

Not automatically. A salary buys a fixed number of hours plus unpaid overtime expectations. Convert the salary to an effective hourly rate using realistic hours, then compare.

Should I compare gross or net?

Compare gross to gross when evaluating offers. Gross reveals the actual cost to the employer and is unaffected by different tax withholding choices.

How do I value paid time off?

Multiply your hourly rate by the paid hours off. Twenty days of paid leave at 8 hours and $25 an hour is $4,000 of value that an hourly role without paid leave does not include.

What is an effective hourly rate?

Total annual pay divided by total hours actually worked, including unpaid overtime. It is the only fair comparison between an hourly job and a salaried one.

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