How do I convert hourly wage to annual salary?

Multiply your hourly rate by hours worked per week, then multiply by weeks worked per year. For full-time work: Annual Salary = Hourly Rate × 40 hours × 52 weeks.

Does this include overtime pay?

No, this calculator shows base salary only. Overtime is typically paid at 1.5× for hours over 40 per week. Add overtime separately to your total earnings.

How many hours is considered full-time?

Full-time work in the US is typically 40 hours per week. This equals 2,080 hours per year when working 52 weeks.

Should I account for unpaid vacation?

Yes. If you have unpaid time off, reduce the weeks per year. For example, 2 weeks unpaid vacation means enter 50 weeks instead of 52.

How do I convert an hourly wage to an annual salary?

Multiply your hourly rate by the hours you work per week, then by the weeks per year. The standard full-time assumption is 40 hours × 52 weeks = 2,080 hours, so $20/hour × 2,080 = $41,600/year. For part-time or seasonal work, plug in your actual hours and weeks: salary = hourly × hours_per_week × weeks_per_year. The result is gross (pre-tax) annual income.

Hourly to Salary Calculator

Convert your hourly wage to annual salary instantly. Calculate yearly, monthly, and weekly income from your hourly rate.

Reviewed by the Calcura editorial team · Last reviewed April 19, 2026

Question: How do I convert an hourly wage to an annual salary?
Answer: Multiply your hourly rate by the hours you work per week, then by the weeks per year. The standard full-time assumption is 40 hours × 52 weeks = 2,080 hours, so $20/hour × 2,080 = $41,600/year. For part-time or seasonal work, plug in your actual hours and weeks: salary = hourly × hours_per_week × weeks_per_year. The result is gross (pre-tax) annual income.

▸Show formula & caveats

Formula: salary = hourly × hours_per_week × weeks_per_year
Caveats: Gross figure — take-home after federal, state, and FICA taxes will be roughly 70–80% of this.
Unpaid time off lowers the real number: 2 unpaid weeks turns 2,080 hours into 2,000.
Overtime at 1.5× can add meaningfully if you consistently work past 40 hours; average it in separately.

Currency:

Hourly Rate

Hours Per Week

Weeks Per Year

What This Calculator Does

This calculator multiplies your hourly rate by the hours you work each week and the weeks you work each year to produce an annualized salary, with monthly and weekly breakdowns. It's a gross calculation — before taxes, benefits, and deductions — so the result represents what's on the pay stub before withholding, not take-home. The calculation assumes your hours and rate are stable; for jobs with tipped wages, variable schedules, or significant overtime, the result represents a base case you'll need to adjust manually.

When To Use This Calculator

Comparing an hourly job offer to a salaried one

A hospital offers $38/hr for 36-hour nursing shifts, 52 weeks/year. Annualizing gives $71,136. Compared to a salaried offer at $75,000 for the same nominal hours, the salaried role is slightly higher gross — but the comparison also has to weigh benefits, overtime eligibility, and shift differentials.

Planning a budget with irregular hours

A part-time retail worker at $18/hr averages 28 hours/week for 48 weeks/year (accounting for unpaid breaks between semesters). Annualized: $24,192. Using this as a budgeting baseline avoids the trap of projecting holiday-season peaks across the full year.

Negotiating a salary from a contractor rate

An independent contractor billing $75/hr wants to know what equivalent salary to target if they return to W-2 employment. The raw conversion ($156,000) overstates the equivalent, since contract rates include self-paid benefits, taxes, and downtime. A 20–30% haircut gives a more realistic W-2 comparison.

Loan or rental pre-qualification

Most lenders and landlords want annual gross income on the application. Multiply hourly × average weekly hours × 52 (or use unpaid-PTO-adjusted weeks) to match what will appear on your tax return or pay stubs.

How It Works

The formula is straightforward: Annual = Rate × Hours/Week × Weeks/Year. Full-time US employment typically uses 40 hours × 52 weeks = 2,080 hours/year. If you take unpaid leave, reduce weeks accordingly (e.g., 50 weeks for two unpaid weeks). Overtime is not included — this calculator assumes every hour is paid at the base rate. For jobs with mandatory overtime (e.g., 50 hours/week at straight time plus 10 hours at 1.5×), compute the overtime portion separately and add it.

Formula

Annual Salary = Hourly Rate × Hours per Week × Weeks per Year

Real-World Example

Scenario

Marco earns $32/hr as a lab tech. He works a standard 40-hour week but takes two weeks of unpaid leave each year to visit family, leaving 50 paid weeks.

Calculation

Annual: $32 × 40 × 50 = $64,000 Monthly: $64,000 / 12 ≈ $5,333 Weekly: $32 × 40 = $1,280

Result

Marco's gross annual salary is about $64,000. Using 52 weeks would overstate by $2,560 — a meaningful difference for loan applications and budgeting. For take-home pay, he should run this gross figure through a tax calculator that accounts for federal, state, and FICA withholding.

Common Mistakes to Avoid

Mistake: Using 52 weeks when you take unpaid leave

Solution: If you take unpaid time off, subtract those weeks. Two weeks of unpaid leave at $30/hr × 40 hr = $2,400 overstatement. Use your actual paid weeks.

Mistake: Ignoring overtime or shift differentials

Solution: If you regularly earn overtime (1.5× after 40 hours under FLSA for non-exempt roles), compute base and overtime separately, then sum. Shift differentials (night, weekend) similarly need to be added to base.

Mistake: Comparing a contractor rate to a salary 1:1

Solution: A $60/hr contractor rate ≠ $125k salary. Contractors pay self-employment tax (~15.3% vs ~7.65% for employees), buy their own health insurance and retirement, and absorb downtime. A rough rule: contractor rate × 2,080 × 0.7 ≈ equivalent W-2 salary.

Mistake: Forgetting that gross is not take-home

Solution: The annual figure here is pre-tax. Federal, state, and FICA together commonly withhold 20–35% depending on bracket and location. For budgeting your actual spendable income, use an income-after-tax calculator.

Hourly-to-Salary: Related Calculators

Salary to Hourly Calculator

Reverse the conversion: find the implied hourly rate of a salaried offer, useful when comparing jobs.

Income After Tax Calculator

Convert the gross figure produced here into an estimated take-home amount.

Budget Percentage Calculator

Once you know annual income, see how your spending breaks down as percentages of it.

When This Isn't the Right Tool

Tipped wages

Use instead: If your income comes largely from tips, the base hourly rate understates actual earnings. Use an annualized average of W-2 total wages (base plus tips) instead.

Commission or bonus-heavy roles

Use instead: For sales or performance-based compensation, use a trailing-12-month W-2 average. A calculator that assumes flat hours won't capture the variable portion.

Multi-job households

Use instead: Annualize each income stream separately, then sum. For lender documentation, most lenders want each job on its own line, with verification from each employer.

International equivalents

Use instead: This uses US-centric defaults (2,080 hours, FLSA overtime rules). UK, EU, and other jurisdictions use different standard-week definitions and paid-leave norms; adjust weeks/year accordingly.

How to Verify This Calculation

In a spreadsheet: =rate*hours*weeks should equal the annual number shown here. Cross-check with a pay stub: multiply gross per pay period × the number of pay periods in a year (typically 26 biweekly or 24 semi-monthly), and the answer should be close if your hours were stable.

Sources

U.S. Department of Labor — Fair Labor Standards Act (FLSA) — Governs federal minimum wage, overtime (1.5× above 40 hours/week), and exempt-vs-non-exempt classification.
Bureau of Labor Statistics — Occupational Employment and Wage Statistics — Official U.S. wage data by occupation and geography for sanity-checking market rates.
IRS — Employment Taxes for Employers — Employer withholding reference, useful for distinguishing gross from net pay.