Hourly to Salary Converter

How to Use the Hourly to Salary Converter

This tool helps you quickly convert an hourly wage into an equivalent annual salary. Follow these simple steps:

1. Enter your hourly rate: Input your pay per hour in dollars
2. Set your work hours: Enter how many hours you work per week (typically 40 for full-time)
3. Specify weeks per year: Default is 52, but you can adjust based on your situation
4. Add unpaid time off: Include vacation days, holidays, or unpaid leave (in weeks)
5. Click Calculate: View your annual, monthly, weekly, and daily salary equivalent

Example Calculation

Common Work Scenarios

Different employment situations use different hour configurations:

• Standard Full-Time: 40 hours/week, 52 weeks/year (2,080 hours annually)
• Full-Time with 2 Weeks Vacation: 40 hours/week, 50 paid weeks (2,000 hours annually)
• Part-Time (20 hours): 20 hours/week, 52 weeks/year (1,040 hours annually)
• Part-Time (30 hours): 30 hours/week, 52 weeks/year (1,560 hours annually)
• Contractor (billable hours): Variable hours, accounting for actual working weeks

Understanding the Calculation

The formula used is straightforward:

Annual Salary = Hourly Rate × Hours per Week × (Weeks per Year - Unpaid Weeks)

Monthly income is calculated by dividing annual salary by 12. Weekly income is your hourly rate times hours per week. Daily income assumes a 5-day work week.

What This Tool Does Not Include

• Taxes: Results show gross income before federal, state, or local taxes
• Benefits: Health insurance, retirement contributions, and other benefits not included
• Overtime: Assumes standard hourly pay, not time-and-a-half or double-time
• Bonuses: Performance bonuses, signing bonuses, or year-end payments
• Commission: Additional earnings from sales or performance metrics
• Paid Time Off: Calculations assume unpaid weeks; adjust if you have paid vacation

Frequently Asked Questions

How do I account for paid vacation?

If your vacation is paid, set "Unpaid Weeks Off" to 0. Your employer pays you for those weeks, so they should be included in your annual salary calculation. Only enter unpaid time off in that field.

What if I work different hours each week?

Use your average weekly hours. Add up your hours over a typical month or quarter, divide by the number of weeks, and use that average. This gives you a more accurate annual estimate for variable schedules.

How accurate is this for contract or freelance work?

For contractors, adjust "Weeks per Year" to reflect actual billable weeks. Many freelancers work 45-48 weeks per year when accounting for client gaps, administrative work, and vacation. The tool calculates billable income, not total business revenue.

Should I include overtime in my hourly rate?

No. Enter your base hourly rate only. Overtime rates (typically 1.5× or 2× base pay) vary by situation and aren't guaranteed income. If you consistently work overtime, you can manually calculate and add that separately.

What's the difference between salary and total compensation?

Salary is your gross wages before deductions. Total compensation includes salary plus benefits like health insurance, employer retirement contributions, stock options, bonuses, and other perks. This tool calculates salary only.

How do part-time employees use this calculator?

Simply enter your actual hours per week. For example, if you work 25 hours/week at $18/hour for 50 weeks, your annual salary would be $22,500. The calculator works for any hour configuration.

Can I use this to compare job offers?

Yes. Convert both hourly and salary offers to the same format for direct comparison. Remember to also compare benefits, work-life balance, commute time, growth opportunities, and other factors beyond just pay.

How do holidays affect the calculation?

If holidays are paid, don't include them in "Unpaid Weeks Off." If they're unpaid, convert holiday days to weeks (e.g., 10 holidays = 2 weeks) and add them to unpaid time off. Most full-time jobs include paid holidays.