Hourly to Salary Calculator — Free Online Calculator
How to Convert Hourly Wage to Annual Salary
The formula is simple: Hourly Rate x Hours Per Week x Weeks Per Year = Annual Salary. For a standard full-time schedule (40 hours/week, 52 weeks/year), multiply your hourly rate by 2,080 to get your annual gross salary.
For example, $20/hour x 2,080 hours = $41,600 per year before taxes. If you take two weeks of unpaid vacation, use 2,000 hours instead, giving you $40,000.
Why This Matters for Job Seekers
When comparing job offers, you need apples-to-apples numbers. A position offering $22/hour sounds different from one advertising $42,000/year, but the hourly job actually pays more ($22 x 2,080 = $45,760). Always convert to the same unit before comparing.
Understanding Take-Home Pay
These figures are gross (pre-tax) earnings. Your actual paycheck will be reduced by federal income tax, Social Security (6.2%), Medicare (1.45%), and state income tax. Most full-time workers take home roughly 70-80% of their gross pay. States like Texas, Florida, and Nevada have no state income tax, giving residents a higher take-home percentage.
Part-Time and Overtime
For part-time workers, enter your actual weekly hours. For overtime, remember that federal law requires time-and-a-half (1.5x) for hours beyond 40 per week. Calculate base pay at 40 hours, then add overtime hours separately at 1.5x your rate.