Hourly to Salary Converter
Convert between hourly pay and annual salary. Adjusts for hours per week, weeks per year, PTO, and overtime.
FINANCEConvert between hourly pay and annual salary in both directions, with adjustments for hours per week, weeks worked per year, paid time off, and overtime at 1.5x or 2.0x.
Annual salary = hourly rate × hours per week × weeks per year. The standard 40-hour, 52-week assumption gives the rule of thumb hourly × 2,080 = annual ($25/hr = $52,000/yr). For PTO-adjusted calculations, subtract 2 weeks for 2-week vacation, giving 50 working weeks. Overtime hours are multiplied by the OT factor (1.5x standard, 2.0x double-time).
Hourly to Salary Converter (and back)
Convert between hourly pay and annual salary, with adjustments for hours per week, weeks worked per year, paid time off, and unpaid breaks.
How the Conversion Works
The simple formula is: Annual salary = Hourly rate × Hours per week × Weeks per year. For a 40-hour week and 52 weeks, that means hourly × 2,080 = annual. So $25/hr × 2,080 = $52,000/year. Going the other way: annual ÷ 2,080 = hourly. A $75,000 salary works out to $36.06/hr.
Reality is messier. Most full-time US jobs offer 2-3 weeks of paid time off, so 49-50 working weeks is more accurate. Hourly workers often have unpaid lunch breaks that reduce paid hours below 40 per week. Salaried workers in many industries (consulting, banking, tech) work 50-60+ hours, which makes the effective hourly rate lower than the simple formula suggests.
When negotiating a salary offer or considering an hourly contract, always normalize on annual. A $40/hr contract for 30 hours/week = $62,400/yr (less than the headline 40 × 40 × 52 = $83,200 implies). Conversely a salary with great benefits (full health, 4% 401k match, 25 days PTO) can be worth $15-25k more than the base number alone.
Estimates assume gross pay. Take-home depends on federal, FICA, and state taxes plus pre-tax deductions. Use the Paycheck Calculator for after-tax figures.