Hourly to Annual Salary Calculator
Convert between hourly rates and annual salaries. See your pay as hourly, daily, weekly, biweekly, monthly, and annual amounts.
Convert between hourly pay and annual salary in both directions. Enter an hourly rate to see the annual salary, or enter a salary to find the effective hourly rate. The calculator shows your income broken down into hourly, daily, weekly, biweekly, monthly, and annual amounts based on your actual working hours.
For informational purposes only. Not financial advice. Calculations are estimates and may not reflect your exact situation. Consult a qualified financial adviser for personalised guidance.
About Hourly to Annual Salary Calculator
The Conversion Formulas
Hourly to annual: Annual Salary = Hourly Rate x Hours per Week x Weeks per Year
Annual to hourly: Hourly Rate = Annual Salary / (Hours per Week x Weeks per Year)
The standard assumption is 40 hours per week and 52 weeks per year (2,080 working hours). You can adjust both numbers for part-time, overtime, or unpaid leave.
Worked example: $25/hour at 40 hours/week, 52 weeks/year:
- Daily (8 hours): $200
- Weekly: $1,000
- Biweekly: $2,000
- Monthly: $4,333
- Annual: $52,000
Quick Reference Table: Hourly Rates to Annual Salaries
Based on 40 hours/week, 52 weeks/year (2,080 hours):
| Hourly Rate | Weekly | Monthly | Annual |
|---|---|---|---|
| $10 | $400 | $1,733 | $20,800 |
| $15 | $600 | $2,600 | $31,200 |
| $20 | $800 | $3,467 | $41,600 |
| $25 | $1,000 | $4,333 | $52,000 |
| $30 | $1,200 | $5,200 | $62,400 |
| $35 | $1,400 | $6,067 | $72,800 |
| $40 | $1,600 | $6,933 | $83,200 |
| $50 | $2,000 | $8,667 | $104,000 |
| $75 | $3,000 | $13,000 | $156,000 |
| $100 | $4,000 | $17,333 | $208,000 |
How Weeks Per Year Affects the Calculation
Not everyone works 52 weeks. Adjusting for unpaid leave changes the annual figure substantially:
| Scenario | Weeks Worked | $25/hour Annual | Difference from 52wk |
|---|---|---|---|
| Full year (no unpaid leave) | 52 | $52,000 | - |
| 1 week unpaid leave | 51 | $51,000 | -$1,000 |
| 2 weeks unpaid leave | 50 | $50,000 | -$2,000 |
| Contractor (48 weeks) | 48 | $48,000 | -$4,000 |
| Academic (9 months) | 39 | $39,000 | -$13,000 |
When comparing a salaried position to an hourly one, remember that salaried employees typically get paid holidays and sick days. An hourly worker earning the "same" rate actually earns less per year if they take any unpaid time off.
Comparing Job Offers Quoted Differently
Job offers may quote pay in different formats. Normalize them to the same period for a fair comparison:
| Offer | Quoted As | Hourly Equivalent | Annual Equivalent |
|---|---|---|---|
| Job A | $55,000/year salary | $26.44/hour | $55,000 |
| Job B | $28/hour contract | $28.00/hour | $58,240 (52wk) or $56,000 (50wk) |
| Job C | $4,500/month | $25.96/hour | $54,000 |
Job B looks highest at $28/hour, but if the contractor takes 2 weeks unpaid leave and gets no employer benefits (health insurance, retirement match), the $55,000 salaried position with benefits might actually be worth more in total compensation.
What Employers Actually Cost Per Hour
Total employer cost runs roughly 30% above the base wage once benefits and payroll taxes are included. The Bureau of Labor Statistics Employer Costs for Employee Compensation release for December 2025 showed private-industry wages and salaries averaged $32.36 per hour while benefit costs added another $13.79 per hour - benefits made up 29.9% of total compensation.
| Cost Component | Approximate % of Wage | On $25/hr ($52K) |
|---|---|---|
| Base wage | 100% | $25.00/hr |
| Social Security + Medicare (FICA) | 7.65% | $1.91/hr |
| Health insurance | 8-12% | $2.50/hr |
| Retirement (401k match) | 3-6% | $1.25/hr |
| Paid leave (holiday/sick/PTO) | 7-10% | $2.00/hr |
| Workers' comp, unemployment insurance | 2-4% | $0.75/hr |
| Total employer cost | ~130-140% | ~$33.41/hr |
This is why contractor rates are typically 30-50% higher than equivalent employee rates. The contractor covers their own benefits, taxes, and unpaid leave - the gap between the two rates is not profit, it is the benefits package priced into the fee.
How Does This Compare to Median Pay?
Median hourly pay gives context for whether a rate is high or low for the market. The US Bureau of Labor Statistics Occupational Employment and Wage Statistics (May 2024 release, the most recent) put the national median hourly wage across all occupations at $23.80 and the mean at $32.66. The UK Office for National Statistics Annual Survey of Hours and Earnings for April 2025 put median full-time hourly pay excluding overtime at £19.67, with median gross annual pay at £39,039.
| Country | Median Hourly | Median Annual (FT) | Source |
|---|---|---|---|
| US (May 2024) | $23.80 | $49,500 approx | BLS OEWS |
| UK (April 2025) | £19.67 | £39,039 | ONS ASHE 2025 |
| UK low-pay threshold | £13.11 | - | ONS (2/3 of median) |
| UK high-pay threshold | £29.51 | - | ONS (1.5x median) |
What Are the Legal Minimum Rates?
The US federal minimum wage has been $7.25 per hour since July 2009 and has not been raised by Congress since. Thirty states plus DC set higher floors - California, Washington, New York and others are above $16 per hour. The federal overtime minimum is $10.88 (1.5x $7.25) for hours over 40 per week under the Fair Labor Standards Act.
The UK National Living Wage rises to £12.71 per hour from 1 April 2026 for workers aged 21 and over, a 4.1% increase from £12.21. The 18-20 rate becomes £10.85 (up 8.5%), the 16-17 rate £8.00, and the apprentice rate £8.00. The UK minimum applies regardless of employer size, unlike in the US where small employers are sometimes exempt.
Contractor vs Employee: Reading the Real Offer
A contractor rate needs to be higher than an equivalent employee rate to match total compensation. Rough rule of thumb: multiply the W-2 hourly rate by 1.35-1.5 for an equivalent contract rate.
Worked comparison: a $60,000 salaried role with health insurance, 15 days PTO, 11 paid holidays, and a 4% 401(k) match has a true compensation value of roughly $78,000 ($60,000 wage + $18,000 in benefits and paid time off). A contractor quoting $30/hour at 2,080 hours a year bills $62,400 - less than the salaried package once benefits and unpaid holiday weeks are counted. To match the $78,000 value, the contractor needs $37.50/hour at 2,080 billable hours, or closer to $40/hour allowing for 2-3 weeks of unpaid leave and sick days.
Part-Time and Overtime Considerations
For part-time workers, adjust hours per week. A 20-hour/week worker at $25/hour earns $26,000/year, not $52,000. For zero-hour or variable-hour roles, use the average weekly hours over the past 12 weeks as the input - UK employers are required to calculate holiday pay using a 52-week reference period for irregular hours workers (Employment Rights Act 1996, as amended by the Employment Rights (Amendment) Regulations 2024).
This calculator does not include overtime, which in the US is paid at 1.5x the regular rate for hours over 40/week (Fair Labor Standards Act section 7(a)). In the UK there is no statutory overtime premium - employers must pay at least the National Minimum Wage averaged across all hours worked, but contractual overtime rates are a matter for the employment contract. A typical US overtime worked example:
- 5 hours overtime/week at $25/hour base: extra $37.50/hr x 5 = $187.50/week = $9,750/year
- Effective annual earnings become $52,000 + $9,750 = $61,750
- Base hourly rate stays $25; overtime hours bill at $37.50
Common Mistakes When Comparing Pay
- Forgetting unpaid leave. A "$30/hour" contract role that works 48 weeks a year is $57,600, not the $62,400 you get from 52-week maths.
- Ignoring employer payroll taxes on self-employment. US self-employed pay the full 15.3% FICA (not just the 7.65% employee half), so a $50/hour 1099 rate has more tax drag than a $50/hour W-2 rate.
- Mixing gross and net. Annual salary is gross (pre-tax). Take-home pay is 60-75% of gross depending on bracket, state, and pension contributions. Never compare a gross salary to a net hourly rate.
- Assuming 40-hour weeks. Salaried professionals in finance, law, and tech often work 45-55 hours. A $100,000 salary at 50 hours/week is $38.46/hour, not $48.08/hour.
- Forgetting the 4.33-week month. Monthly pay = annual / 12, but there are 4.33 weeks in an average month, not 4. Weekly-to-monthly conversion is x4.33, not x4.
For a detailed breakdown of take-home pay after taxes, the salary calculator covers UK PAYE, and the US income tax calculator handles federal brackets. To plan your budget based on the income shown here, the budget calculator helps allocate your take-home pay.
All calculations run in your browser. No data is collected or stored.
Sources
Frequently Asked Questions
How do I convert hourly rate to annual salary?
Multiply your hourly rate by the number of hours you work per week, then multiply by the number of weeks you work per year. For a standard 40-hour week over 52 weeks, multiply your hourly rate by 2,080 to get your annual salary.
Why are there different weeks per year options?
Not everyone works 52 weeks a year. If you get 2 weeks of unpaid leave, use 50. If you work part of the year or are a contractor, adjust accordingly. This changes the annual salary calculation significantly.
Does this account for overtime?
No, this calculates based on a fixed hourly rate and regular hours. If you earn overtime at a different rate, you would need to calculate that separately and add it to the base figure shown here.
How do I calculate my hourly rate from salary?
Switch to "Salary to Hourly" mode and enter your annual salary. The calculator divides it by total annual working hours (hours per week multiplied by weeks per year) to give your effective hourly rate.
Is the monthly figure exact?
The monthly figure is the annual salary divided by 12, which gives an average month. In practice, months have different numbers of working days, so actual monthly paychecks may vary slightly depending on your employer's pay schedule.
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