Hourly to Salary Converter
Quickly convert between hourly wages and annual salary in both directions. Calculate your true earnings including benefits and after-tax estimates.
Your conversion results will appear here after you calculate.
How to Use the Hourly to Salary Converter
- Choose Direction: Select "Hourly → Salary" or "Salary → Hourly" tab
- Enter Your Rate: Input your hourly wage or annual salary
- Set Hours Per Week: Use preset buttons or enter custom hours (default: 40)
- Adjust Weeks: Set weeks worked per year (default: 52, account for unpaid leave)
- Add Benefits (Optional): Include value of health insurance, retirement matching, etc.
- Tax Estimate (Optional): Check box to see after-tax amounts
- Calculate: Get comprehensive breakdown of your compensation
Understanding the Calculation
The conversion between hourly and annual salary follows a simple formula:
Annual Salary = Hourly Rate × Hours per Week × Weeks per Year
The standard full-time calculation uses 40 hours per week × 52 weeks = 2,080 hours per year. However, this calculator lets you adjust for part-time work, unpaid time off, or overtime expectations.
Why This Matters
Understanding your true compensation is essential for making informed career decisions. Many job offers quote annual salary while contract positions quote hourly rates, making direct comparison difficult. This tool helps you:
- Compare Job Offers: Evaluate full-time salary vs. hourly contract positions fairly
- Negotiate Compensation: Know your worth in both hourly and annual terms
- Budget Effectively: Understand your monthly, weekly, and daily earning rates
- Freelance Pricing: Convert desired salary to hourly billing rates
- Total Compensation: Factor in benefits to see the full picture
Salary vs. Hourly: Key Differences
Salary Benefits
- Predictable income
- Usually includes benefits (health, retirement)
- Paid time off typically included
- More job security
- Career advancement opportunities
Hourly Benefits
- Overtime pay for extra hours
- Flexibility to work more/less
- Clear work-life boundaries
- Multiple job opportunities
- Paid for exact time worked
Frequently Asked Questions
What is the standard calculation for full-time work?
The standard is 40 hours per week × 52 weeks per year = 2,080 working hours annually. So an hourly rate of $25/hour equals approximately $52,000 per year before taxes.
Should I use 50 or 52 weeks per year?
Use 52 weeks if you're paid for vacation and sick days. Use 50 weeks (or less) if you have unpaid time off. For example, 2 weeks of unpaid vacation means you'd work 50 weeks, reducing your annual salary by about 4%.
How do I calculate my freelance hourly rate from desired salary?
Freelancers should account for unbillable hours (admin, marketing, etc.) and benefits they must buy themselves. A common formula: divide your desired salary by 1,000-1,500 billable hours per year, not 2,080. So $60k desired salary ÷ 1,200 billable hours = $50/hour minimum.
What benefits should I include in the benefits value?
Include employer contributions to health insurance, dental, vision, 401k matching, life insurance, disability insurance, HSA/FSA contributions, tuition reimbursement, and any other monetary benefits. A typical benefits package is worth 20-30% of base salary.
Is the after-tax estimate accurate?
The after-tax calculation is a rough estimate only. Actual taxes depend on many factors: filing status, deductions, credits, state/local taxes, and more. Consult a tax professional or use detailed tax calculators for precise numbers.
How does overtime affect the calculation?
Overtime (typically time-and-a-half for hours over 40/week) significantly increases hourly earnings. A $20/hour worker earning $30/hour for 10 overtime hours weekly: (40 × $20) + (10 × $30) = $1,100/week = $57,200 annually.
💰 Compensation Negotiation Tips
- Know Your Market Rate: Research typical pay for your role, experience level, and location
- Consider Total Compensation: Benefits can be worth $10k-$30k+ annually
- Factor Location: Higher salaries in expensive cities may have less buying power
- Account for Taxes: A $10k raise is only $6k-$7k after taxes
- Freelance Premium: Charge 25-50% more per hour than salaried equivalent
Understanding Your True Hourly Value
Salaried Workers: If you regularly work 50+ hours weekly, divide your annual salary by actual hours worked, not 2,080. A $70k salary with 60-hour weeks = $22.44/hour, not $33.65/hour.
Contractors & Freelancers: Remember to set aside 25-35% for taxes and budget for health insurance, retirement, and unbillable time. Your effective take-home is significantly less than your billing rate.
This calculator provides estimates for informational purposes only. Actual compensation depends on many factors including employer policies, location, benefits, and tax situation. Always verify calculations with your employer or financial advisor.