Hourly to salary: the idea behind the conversion

Hourly pay is simple: you earn a fixed amount for each hour you work. Salary is different: it’s usually shown as a yearly number (like “$60,000/year”) even if you’re paid every two weeks. This calculator converts hourly wages into salary-style numbers by multiplying your hourly wage by the number of paid hours you work over a year.

The key is that there is no single “universal” conversion, because different people work different schedules. Two people earning the same hourly wage can have very different yearly pay if one works 20 hours per week and the other works 45. That’s why this calculator asks for your schedule inputs: hours per week and working weeks per year.

Most full-time schedules assume roughly 40 hours per week and 52 weeks per year. But in the real world, you may take unpaid time off, have a seasonal job, or work a different number of weeks. If you take 2 weeks unpaid vacation, your working weeks per year might be closer to 50 than 52. If you do gig work, it might be 35 weeks some years and 48 others. The more accurate your schedule inputs are, the more accurate your salary estimate will be.

• Annual salary (no overtime) = Hourly Wage × Hours per Week × Weeks per Year
• Monthly pay = Annual Salary ÷ 12
• Weekly pay = Annual Salary ÷ Weeks per Year
• Daily pay = Weekly Pay ÷ Working Days per Week

Overtime is where many “quick” conversions break. In many jobs, hours over a certain threshold (often 40 hours/week) are paid at a higher rate like 1.5× (“time and a half”). Since rules vary by job and location, this calculator lets you choose both the threshold and the multiplier.

• Regular hours = min(Hours per Week, Overtime Threshold)
• Overtime hours = max(0, Hours per Week − Overtime Threshold)
• Weekly pay with overtime = (Regular Hours × Hourly Wage) + (Overtime Hours × Hourly Wage × Multiplier)
• Annual salary with overtime = Weekly pay with overtime × Weeks per Year

Notice how overtime increases annual pay non-linearly: each extra hour above the threshold is worth more than a normal hour. If you consistently work overtime, this can meaningfully change the annual number you should use for budgeting.

Real examples (with and without overtime)

Suppose you earn $25/hour, work 40 hours/week, and work 52 weeks/year. Your yearly salary estimate is:

• Annual: 25 × 40 × 52 = $52,000
• Monthly: 52,000 ÷ 12 ≈ $4,333.33
• Weekly: 52,000 ÷ 52 = $1,000
• Daily (5 days/week): 1,000 ÷ 5 = $200

Now imagine the same hourly wage and weekly schedule, but you only work 50 weeks/year due to unpaid time off. That changes annual pay to 25 × 40 × 50 = $50,000. This is why “weeks per year” is not a small detail.

Suppose you earn $30/hour and work 50 hours/week, with overtime after 40 hours at 1.5×. Weekly pay becomes:

• Regular: 40 × 30 = $1,200
• Overtime: 10 × 30 × 1.5 = $450
• Total weekly: 1,200 + 450 = $1,650
• Annual (52 weeks): 1,650 × 52 = $85,800

If you work 40 hours/week for 52 weeks/year, a $2/hour raise is: 2 × 40 × 52 = $4,160/year (before tax). That’s why even small hourly changes can matter.

Note: These examples ignore bonuses, benefits, unpaid breaks, and tax withholding. Use the results as a clean “base pay” comparison.

Make the conversion “apples-to-apples”

The biggest trap when comparing hourly pay to salary is mixing assumptions. One job offer might quote 40 hours/week, another might quietly imply regular overtime. One role might be hourly with paid holidays, another might be contract work with unpaid time off. To compare fairly, do this:

• Use the same weeks/year for both offers if you’re comparing base pay (e.g., 52), then run a second scenario using your realistic time off.
• Match the schedule: if one job is 4×10-hour days, select 4 working days/week to get a better “daily” estimate.
• Toggle overtime only if you genuinely expect it to be consistent.
• Separate base pay vs total comp: benefits, health insurance, 401(k) match, stock, and bonuses are real value but are not in this base pay calculator.

A nice “viral” way to use this tool is to convert a friend’s hourly wage into a yearly number, then ask: “If you could add just $1/hour, what would you do with the extra $2,080/year?” It makes raises feel concrete and shareable.

• Full-time at 40h/week and 52 weeks/year: Annual ≈ Hourly × 2,080
• So $20/hour ≈ $41,600/year and $35/hour ≈ $72,800/year
• If your output is wildly off, double-check hours/week and weeks/year inputs

Frequently Asked Questions

• What should I set for “weeks per year”?

  If you want a classic conversion, use 52. If you want a more realistic estimate, subtract unpaid time off. For example, 2 weeks unpaid vacation → 50 weeks/year. Seasonal or contract work might be 35–48 weeks/year.

• Does this include taxes or deductions?

  No. This calculator shows gross pay estimates (before tax). Net pay depends on withholding, benefits, retirement contributions, insurance, and local tax rules.

• Why is monthly pay not simply weekly pay × 4?

  Because most months are longer than 4 weeks. A quick shortcut is weekly pay × 4.33 (since 52 weeks ÷ 12 months ≈ 4.33), but this calculator uses Annual ÷ 12 for a clean monthly average.

• How do I handle paid holidays and paid time off?

  If your paid time off is truly paid, you can keep weeks/year closer to 52. If your time off is unpaid, reduce weeks/year. If you’re unsure, run both scenarios to see a best-case vs realistic range.

• Is overtime always paid at 1.5× after 40 hours?

  Not always. Rules vary by role, jurisdiction, and whether you’re exempt/non-exempt. That’s why this tool lets you set the threshold and multiplier. If you don’t know, leave overtime off for base pay comparison.

• Can I convert salary to hourly instead?

  This page focuses on hourly → salary. If you want salary → hourly, use the reverse relationship: Hourly ≈ Annual Salary ÷ (Hours per Week × Weeks per Year). (We can add a dedicated salary-to-hourly page too.)