Hourly to Salary Calculator Formula
Understand the math behind the hourly to salary calculator. Each variable explained with a worked example.
Formulas Used
Annual Salary
annual_salary = annualMonthly Salary
monthly_salary = annual / 12Weekly Salary
weekly_salary = hourly_rate * hours_per_weekVariables
| Variable | Description | Default |
|---|---|---|
hourly_rate | Hourly Rate(USD/hr) | 25 |
hours_per_week | Hours Per Week(hrs) | 40 |
weeks_per_year | Weeks Per Year(weeks) | 52 |
annual | Derived value= hourly_rate * hours_per_week * weeks_per_year | calculated |
How It Works
How to Convert Hourly Pay to Salary
Multiply the hourly rate by hours worked per week, then by weeks per year.
Formula
Annual Salary = Hourly Rate x Hours/Week x Weeks/Year
Use 50 weeks instead of 52 if you take 2 weeks unpaid vacation.
Worked Example
You earn $25/hour, work 40 hours/week, 52 weeks/year.
- 01Weekly pay = $25 x 40 = $1,000
- 02Annual salary = $1,000 x 52 = $52,000
- 03Monthly salary = $52,000 / 12 = $4,333.33
Frequently Asked Questions
Should I use 50 or 52 weeks?
Use 52 if you receive paid vacation or work every week. Use 50 (or your actual working weeks) if you take unpaid time off.
Does this account for taxes?
No, this is the gross (pre-tax) equivalent. Your take-home pay will be lower after federal, state, and payroll taxes.
How do I account for overtime?
For the standard 40 hours, use your regular rate. Overtime hours (usually over 40/week) are typically paid at 1.5x your hourly rate.
Ready to run the numbers?
Open Hourly to Salary Calculator