How do I convert hourly wage to annual salary?

Multiply hourly rate × hours per week × 52 weeks. For $25/hour at 40 hours/week: $25 × 40 × 52 = $52,000 annual salary. Adjust for unpaid time off if applicable.

Is it better to be hourly or salaried?

Hourly workers get overtime pay and flexibility. Salaried workers get consistent pay and often better benefits. Higher-earning professionals usually benefit from salary; hourly protects against unpaid overtime.

How do I account for unpaid time off?

If you don't get paid vacation/sick days, multiply by actual weeks worked instead of 52. Two weeks unpaid: 50 weeks × hourly × hours = more accurate annual income.

What's the equivalent hourly rate for a $50,000 salary?

Divide salary by 2,080 (40 hours × 52 weeks): $50,000 ÷ 2,080 = $24.04/hour. For true comparison, factor in actual hours worked—salaried employees often work more than 40 hours.

How does overtime affect the comparison?

Hourly workers earn 1.5x for overtime. A $20/hour worker averaging 45 hours/week earns more than a $45,000 salaried employee working the same hours who doesn't get overtime.

Should I include benefits in the comparison?

Yes! Add employer-provided benefits value: health insurance ($5,000-15,000), retirement match (2-6% of salary), paid time off. Salaried positions often have richer benefits packages.

What's a living wage in hourly terms?

Living wage varies dramatically by location. Use $15-20/hour as a baseline, but major cities may require $25-35/hour. Calculate based on actual local housing and living costs.

How do I negotiate when switching between hourly and salary?

Calculate equivalent compensation including overtime potential and benefits. If moving to salary, ensure base covers what you'd earn hourly including typical overtime.

Hourly to Salary Calculator

Convert between hourly wage and annual salary

Instant results•No signup•Estimates only

Hourly Rate

Hours Per Week

Weeks Per Year

Extra Overtime/Week

Annual Salary Equivalent

$50,000

Monthly

$4,167

Bi-Weekly

$1,923

Weekly Pay

$1,000

Annual Hours

2,000

Results are estimates based on the values you enter.

Results are estimates for informational purposes only and do not constitute financial advice. Your actual budget may vary based on spending habits and unforeseen expenses.

How calculations work Full disclaimer

Hourly to Salary Calculator Formula

Salary = Hourly \times Hours/Week \times 52

Annual salary equals hourly rate times hours per week times 52 weeks. For overtime, add hours beyond 40 at 1.5x rate. This helps compare hourly positions to salaried offers.

How the Hourly to Salary Calculator Works

1Enter your hourly wage
2Specify hours worked per week
3Optionally add typical overtime hours
4Adjust weeks worked per year if not 52
5View annual, monthly, and weekly earnings

Hourly to Salary Calculator Key Terms

Hourly Rate: Compensation paid per hour worked, typically with overtime provisions above 40 hours.
Salary: Fixed annual compensation regardless of hours worked, typically divided into regular pay periods.
Overtime: Hours worked beyond 40 per week, typically paid at 1.5x regular hourly rate for non-exempt workers.
Exempt vs. Non-Exempt: Exempt employees (salaried) are not entitled to overtime; non-exempt (usually hourly) must receive overtime pay.

Hourly to Salary Calculator Tips

•Include benefits value when comparing hourly to salaried positions
•Consider unpaid overtime when evaluating true salaried hourly rate
•Factor in paid time off differences between hourly and salaried
•Overtime can significantly boost hourly worker earnings
•Some salaried positions pay less per hour than hourly when extra hours are required

When to Use This Hourly to Salary Calculator

✓Comparing a salaried job offer to hourly work
✓Understanding annual income from hourly wages
✓Calculating the value of overtime hours
✓Converting salary to hourly for comparison
✓Negotiating compensation

Hourly to Salary Calculator Examples

Standard Full-Time

Hourly:$25Hours:40/weekWeeks:52

Result:$52,000 annual salary

$25 × 40 hours × 52 weeks = $52,000 annual gross salary.

With Overtime

Hourly:$20Regular:40 hrsOT:10 hrs/week

Result:$57,200 annual

Regular pay $41,600 plus overtime (10 hrs × 1.5 × $20 × 52 weeks) = $57,200 total.

Salary to Hourly

Salary:$75,000Hours:40/weekWeeks:52

Result:$36.06 hourly equivalent

$75,000 ÷ 2,080 annual hours = $36.06 per hour.

Understanding Hourly to Salary in Depth

Understanding your true compensation—whether you're hourly or salaried—helps you compare job offers, negotiate fairly, and plan finances accurately. This calculator bridges the gap between different pay structures.

Hourly vs. Salary Trade-offs

Hourly advantages: Paid for every hour worked, overtime compensation, clear work/life boundaries. Salary advantages: Predictable income, potentially more flexibility, often more benefits, perceived professional status.

The True Cost of "Salary"

A $52,000 salary sounds like $25/hour (52,000 ÷ 2,080 hours). But if you work 50 hours weekly, you're actually earning $20/hour. When comparing to hourly positions, calculate your effective hourly rate including typical extra hours.

Overtime Value

At $20/hour, each overtime hour earns $30. Working 5 overtime hours weekly adds $7,800 annually. This is significant income that disappears in many salaried positions. Factor overtime potential when evaluating hourly opportunities.

Beyond the Paycheck

True compensation comparison must include: health insurance value (can be $5,000-20,000+), retirement matching (often 3-6% of salary), paid time off value, other benefits (life insurance, disability, education). A lower-paying job with better benefits might be worth more overall.

Hourly to Salary Calculator FAQs

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Marcus Chen

Financial Analysis Specialist

Marcus has over 12 years of experience in quantitative finance and personal financial planning. He specializes in loan analysis, investment modeling, and consumer debt strategies. His methodologies incorporate industry-standard financial mathematics used by major lending institutions.

Content reviewed: January 2026Next review scheduled: 2027

Editorial Standards: All calculations use industry-standard financial formulas. Content is reviewed for mathematical accuracy and updated to reflect current market conditions. This tool provides estimates for informational purposes and does not constitute financial advice.