Hourly to Salary Calculator

Converting between an hourly wage and an annual salary is one of the most common financial calculations people need to make. Whether you are evaluating a job offer, negotiating a raise, or comparing positions, understanding how your pay translates across different time periods is essential for informed financial decisions.

How the Conversion Works

The basic formula is straightforward: Annual Salary = Hourly Rate x Hours per Week x Weeks per Year. For example, a $25/hour wage at 40 hours per week for 52 weeks equals $52,000 per year. However, real-world calculations involve more factors such as paid time off, overtime, and taxes, which this calculator handles for you.

Understanding Your True Earnings

Vacation days and paid holidays affect your effective hourly rate. If you receive 10 vacation days and 10 holidays (20 days total, or 4 weeks), your actual working weeks drop from 52 to 48. This means a $52,000 salary with 4 weeks off actually pays you about $27.08 per hour for the hours you work, not $25.00. This calculator accounts for this important distinction.

Overtime Impact

Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay of at least 1.5 times their regular rate for hours worked beyond 40 per week. Some industries or agreements offer double time (2x) for holidays or extended hours. Even a few hours of overtime per week can significantly boost annual earnings. For example, 5 hours of overtime at 1.5x rate on a $25/hour wage adds $9,750 to your annual pay.

Average Salary Benchmarks (US, 2024)

Salary Negotiation Tips

• Research market rates for your role and location before negotiating.
• Consider the full compensation package: health insurance, 401k match, PTO, and bonuses can add 20-30% to base pay value.
• Use the comparison mode to evaluate two different offers side by side.
• Factor in commute costs, remote work flexibility, and career growth potential.
• Remember that a higher hourly rate with fewer hours may provide better work-life balance than a higher salary with overtime expectations.
• Ask for the offer in writing and use specific data points from tools like this calculator to support your counter-offer.

Tax Considerations

The US federal income tax system uses progressive brackets, meaning different portions of your income are taxed at different rates. The 2024 standard deduction for single filers is $14,600, meaning that amount is not subject to federal income tax. Keep in mind that the tax estimates provided here cover federal income tax only. State income taxes, Social Security (6.2%), Medicare (1.45%), and local taxes will further reduce take-home pay. Use this estimate as a starting point for understanding your net income.

Hourly vs. Salary: Key Differences