How the Hourly to Annual Salary Calculator works
This tool converts an hourly wage into the pay figures you actually plan around: annual salary, monthly pay, biweekly pay, and weekly pay. It uses the standard annualization formula that payroll systems and recruiters use to compare an hourly rate against a salaried offer.
The formula
For an hourly wage W, regular hours worked per week H, paid weeks per year Y, and overtime hours per week O paid at 1.5× the base rate, the calculator computes:
Weekly pay = (W × H) + (W × 1.5 × O)
Annual salary = Weekly pay × Y
Monthly pay divides the annual salary by 12, and biweekly pay is simply two weeks of weekly pay. The calculator does not withhold taxes or deductions — every figure is gross pay before federal, state, and payroll taxes.
Worked example
Take a $25.00/hour wage, 40 hours per week, 52 paid weeks per year, and no overtime. Weekly pay is $25 × 40 = $1,000. Annualized across 52 weeks, that is $52,000 per year — $4,333.33 per month and $2,000 every two weeks. Add 5 hours of weekly overtime at 1.5×, and weekly pay rises to $1,000 + ($25 × 1.5 × 5) = $1,187.50, pushing the annual total to $61,750.
The standard work year
The most common baseline is 40 hours per week for 52 weeks, or 2,080 hours per year. Lower the "paid weeks per year" input if you take unpaid time off — two weeks of unpaid leave leaves 50 paid weeks, which reduces the annual total proportionally even though the hourly rate and weekly hours stay the same.
What moves the annual figure most
- Hourly wage: every extra dollar per hour adds roughly $2,080 a year at the standard 40-hour, 52-week baseline.
- Hours per week: more scheduled hours multiply directly into both weekly and annual pay.
- Paid weeks per year: unpaid vacation, furloughs, or seasonal layoffs shrink the annual total even at a fixed hourly rate.
- Overtime: hours beyond the standard schedule paid at 1.5× add disproportionately — 5 overtime hours on a 40-hour week raises weekly pay by more than 12%.
What this calculator does not include
The result is gross pay only. It does not subtract federal or state income tax, FICA (Social Security and Medicare), health insurance premiums, retirement contributions, or other payroll deductions, and it does not add the value of employer-paid benefits. Use it to compare gross pay rates or convert between pay periods, then account for taxes and benefits separately when weighing full compensation packages.