How the Wage to Salary Calculator works
This calculator converts an hourly wage into the equivalent salary figures employers and job seekers compare: weekly, biweekly, monthly, and annual gross pay. It also accounts for overtime hours paid at a premium rate, since many hourly jobs pay time-and-a-half (or more) once a worker crosses 40 hours in a week.
The formula
Weekly pay is built from two parts: regular hours paid at the base wage, and any overtime hours paid at a multiple of that wage.
Weekly pay = (Regular hours x Hourly wage) + (Overtime hours x Hourly wage x OT rate)
Annual salary then multiplies weekly pay by the number of weeks actually worked in the year (52 for a worker who takes no unpaid time off, fewer if there is unpaid leave):
Annual salary = Weekly pay x Weeks worked per year
Monthly salary divides the annual figure by 12, and biweekly pay is simply two weeks of pay added together — the standard basis for a biweekly paycheck.
Worked example
Take a $25/hour wage, 40 regular hours per week, no overtime, and 52 weeks worked. Weekly pay is 40 x $25 = $1,000. Annual salary is $1,000 x 52 = $52,000, which works out to $4,333.33 per month and $2,000 per biweekly paycheck.
Now add 5 overtime hours per week at time-and-a-half: overtime pay is 5 x $25 x 1.5 = $187.50, so weekly pay rises to $1,187.50 and annual salary rises to roughly $61,750.
The 2,080-hour baseline
A common shortcut used by employers and payroll systems is the 2,080-hour year: 40 hours x 52 weeks. Multiplying an hourly wage by 2,080 gives a quick annual estimate for a full-time worker with no unpaid time off and no overtime — this calculator produces the same figure when regular hours are 40, overtime is 0, and weeks worked is 52.
What this calculator does not include
All figures here are gross pay — before federal, state, and local income tax withholding, Social Security and Medicare (FICA), health insurance premiums, or retirement contributions. Take-home pay after those deductions is typically lower than the gross figures shown. If you take unpaid vacation, unpaid holidays, or other unpaid leave, lower the "weeks worked per year" input to reflect the weeks you are actually paid for.