Hourly to Salary Calculator
Convert hourly wage to annual salary, or salary to hourly rate. Includes overtime calculator.
How to Convert Hourly Wage to Annual Salary
Converting between hourly wages and annual salaries is a fundamental financial calculation for anyone evaluating a job offer, negotiating compensation, or comparing full-time versus contract work. The core formula is straightforward, but there are important nuances — vacation days, overtime eligibility, and benefits — that affect the true value of any compensation package.
The standard conversion formula for a full-time employee working 40 hours per week, 52 weeks per year:
Annual Salary = Hourly Wage × 40 × 52 = Hourly Wage × 2,080
Here is a quick reference table for common hourly rates:
| Hourly Rate | Annual Salary | Monthly | Weekly |
|---|---|---|---|
| $15/hour | $31,200 | $2,600 | $600 |
| $20/hour | $41,600 | $3,467 | $800 |
| $25/hour | $52,000 | $4,333 | $1,000 |
| $30/hour | $62,400 | $5,200 | $1,200 |
| $40/hour | $83,200 | $6,933 | $1,600 |
| $50/hour | $104,000 | $8,667 | $2,000 |
| $75/hour | $156,000 | $13,000 | $3,000 |
Salary vs Hourly: Which Is Better?
The choice between salaried and hourly employment involves more than just the dollar amount. Each classification comes with important differences in how you're paid, your legal protections, and your total compensation.
Hourly employees are typically classified as "non-exempt" under the Fair Labor Standards Act (FLSA), meaning they must receive overtime pay (at least 1.5× their regular rate) for all hours worked beyond 40 in a week. This provides meaningful protection — if your employer consistently asks for 45–50 hours per week, you're compensated for every extra hour.
Salaried employees are often classified as "exempt" from overtime requirements, meaning they receive the same paycheck regardless of hours worked. A salaried employee working 55 hours per week earns the same as one working 40 hours. However, salaried positions typically come with better benefits: health insurance, paid time off, 401(k) matching, and career development opportunities.
How Paid Vacation Affects Your Effective Hourly Rate
Paid time off directly increases your effective hourly rate because you're receiving pay for time you're not actually working. Consider a $52,000 annual salary:
- No PTO: $52,000 ÷ 52 weeks ÷ 40 hours = $25.00/hour
- 10 days (2 weeks) PTO: $52,000 ÷ 50 worked weeks ÷ 40 hours = $26.00/hour
- 20 days (4 weeks) PTO: $52,000 ÷ 48 worked weeks ÷ 40 hours = $27.08/hour
When comparing a salaried job offering $50,000 with 20 days PTO to an hourly contract role at $26/hour with no benefits, the salaried position has an effective hourly rate of $26.04/hour — essentially the same — but also includes paid time off, which the contract role lacks entirely.
Understanding Overtime Pay Rules
Under federal FLSA rules, non-exempt employees must receive at least 1.5× their regular rate for all hours over 40 in a single workweek. Some states go further: California requires daily overtime (1.5× for hours over 8/day, 2× for hours over 12/day), and Alaska and Nevada also have daily overtime requirements.
To calculate overtime: OT Pay = (Overtime Hours) × (Regular Rate × Multiplier). At $25/hour with 10 overtime hours: Regular = $25 × 40 = $1,000 + Overtime = $25 × 1.5 × 10 = $375 → Total = $1,375 for the week. The effective hourly rate for that week: $1,375 ÷ 50 hours = $27.50/hour.
The "blended rate" matters for workers with variable hours: if you regularly work 50-hour weeks at $25 base rate with 1.5× overtime, your annualized equivalent is $1,375 × 52 = $71,500 — significantly more than the $52,000 implied by the base hourly rate alone.