Hourly to Salary Calculator
Convert between hourly wage and annual salary. See weekly, bi-weekly, monthly, and yearly take-home pay estimates.
How salaries are calculated from hourly rates
The standard formula assumes 40 hours/week × 52 weeks = 2,080 hours per year. A $25/hr wage at full-time hours therefore equals $25 × 2,080 = $52,000/year.
Common quick conversions
| Hourly | Weekly (40hr) | Monthly | Annual |
|---|---|---|---|
| $15/hr | $600 | $2,600 | $31,200 |
| $20/hr | $800 | $3,467 | $41,600 |
| $25/hr | $1,000 | $4,333 | $52,000 |
| $30/hr | $1,200 | $5,200 | $62,400 |
| $40/hr | $1,600 | $6,933 | $83,200 |
| $50/hr | $2,000 | $8,667 | $104,000 |
| $75/hr | $3,000 | $13,000 | $156,000 |
| $100/hr | $4,000 | $17,333 | $208,000 |
Take-home pay estimates use a flat tax rate for simplicity. Actual tax depends on your filing status, deductions, state/local taxes, and other factors.
Weekly, monthly and annual: which one to use
Every conversion on this page ultimately comes back to hours per year. Pick the working pattern that matches your situation:
| Pattern | Hours / week | Weeks / year | Hours / year |
|---|---|---|---|
| Standard full-time (US) | 40 | 52 | 2,080 |
| Full-time with 2 weeks PTO unpaid | 40 | 50 | 2,000 |
| UK full-time (37.5h contract) | 37.5 | 52 | 1,950 |
| Part-time (30h) | 30 | 52 | 1,560 |
| Half-time (20h) | 20 | 52 | 1,040 |
To convert monthly to annual, multiply by 12. To go from annual to hourly for any pattern, divide by the hours-per-year figure in the row that matches your contract. A £45,000/year salary at 37.5 hours × 52 weeks works out to £45,000 ÷ 1,950 ≈ £23.08/hour, not £21.63 you'd get from the 2,080-hour US convention.
Overtime, holiday pay and unpaid time off
The simple formula assumes every hour is paid at the same rate. Two adjustments matter:
- Overtime multipliers. In the US, non-exempt workers get 1.5× pay for hours over 40 in a week (Fair Labor Standards Act). At $25/hr, ten hours of overtime pay $25 × 10 × 1.5 = $375, not $250. Some states (California) also require 2× for hours beyond 12 in a day.
- Unpaid PTO. If you take two weeks off unpaid, your effective hourly rate on the payslip stays the same but your annualised earnings drop from $52,000 to $50,000. Salaried employees don't feel this — hourly workers do.
- Holiday and public holiday pay. UK statutory minimum is 5.6 weeks (28 days including bank holidays) paid leave for full-time workers. In practice a salaried employee working 37.5 × 46.4 productive weeks still earns for all 52.
Gross vs net: why the take-home number differs
The "annual" figure this calculator produces is gross — before income tax, National Insurance / FICA / Medicare, and any pension or health-plan deductions. As a rule of thumb:
- US: keep 70–80% of gross for a mid-range salary (~$50–100k) after federal + state + FICA. Higher earners in high-tax states can drop below 65%.
- UK: keep about 75% of £30k, 70% of £50k, 65% of £70k, and 60% of £100k+ (where the personal-allowance taper kicks in). See our UK take-home pay calculator for exact figures.
Common mistakes
- Assuming 40 hours × 52 weeks for a UK contract. Most UK full-time contracts are 37.5 or 35 hours. Using the US 2,080 figure understates the hourly equivalent by 6–13%.
- Forgetting bonuses and commission. If bonuses average 10% of base, an hourly quote from base alone under-represents the actual comp. When comparing offers, use total compensation.
- Comparing hourly to salary without benefits. A $30/hr contractor without healthcare is not equivalent to a $30/hr W-2 employee with insurance, PTO, and a 401(k) match. Contractors typically need 25–40% more gross to net the same.
Frequently asked questions
Should I use 2,080 or 2,000 working hours per year?
Use 2,080 if your PTO is paid (standard salaried job in the US) — you're earning for all 52 weeks. Use 2,000 if you're a contractor or hourly worker whose two weeks off are unpaid. For UK contracts on 37.5 hours, use 1,950. The choice can shift the hourly figure by 4–7%.
How do I convert a monthly salary to an hourly rate?
Multiply monthly by 12 to get annual, then divide by your hours-per-year (2,080 for US full-time). Example: £3,750/month × 12 = £45,000 → £45,000 ÷ 1,950 ≈ £23.08/hour for a 37.5-hour UK contract.
Does this include overtime pay?
No. The base conversion assumes every hour is paid at the same rate. If you regularly work overtime at 1.5× or 2× your base, calculate that separately and add to your annualised figure.
Is contractor day-rate directly comparable to a salary?
Not without adjustment. Contractors need to cover their own healthcare, PTO, pension, and employer-side taxes. A common rule: a contractor day rate × 220 working days should be roughly 25–40% higher than the equivalent salary to net the same.
Why does my payslip hourly rate differ from this calculator?
Employers often use different assumptions: some use 173.33 hours/month (2,080 ÷ 12), some use exact weekday counts for the month, and some pro-rate for salaried employees who take unpaid leave. The number here is a clean annualised estimate — your payroll system may round differently.