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 = annual

Monthly Salary

monthly_salary = annual / 12

Weekly Salary

weekly_salary = hourly_rate * hours_per_week

Variables

VariableDescriptionDefault
hourly_rateHourly Rate(USD/hr)25
hours_per_weekHours Per Week(hrs)40
weeks_per_yearWeeks Per Year(weeks)52
annualDerived value= hourly_rate * hours_per_week * weeks_per_yearcalculated

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.

hourly_rate = 25hours_per_week = 40weeks_per_year = 52
  1. 01Weekly pay = $25 x 40 = $1,000
  2. 02Annual salary = $1,000 x 52 = $52,000
  3. 03Monthly salary = $52,000 / 12 = $4,333.33

Ready to run the numbers?

Open Hourly to Salary Calculator