Hourly Wage to Salary Converter

Convert your hourly wage to annual, monthly, and weekly salary to better understand your total compensation.

How to Use This Calculator

Enter your hourly wage in the first field
Input the number of regular hours you work each week
Specify how many weeks you work per year (typically 52)
If applicable, add your average weekly overtime hours
Click Calculate to see your salary breakdown

Formula Used

Annual Salary = (Hourly Wage × Hours Per Week × Weeks Per Year) + (Hourly Wage × Overtime Multiplier × Overtime Hours × Weeks Per Year)

Where:

Hourly Wage = Your base pay rate per hour
Hours Per Week = Regular hours worked weekly
Weeks Per Year = Number of weeks worked annually
Overtime Multiplier = Pay rate for overtime hours (typically 1.5x)
Overtime Hours = Average overtime hours worked weekly

Example Calculation

Real-World Scenario:

Sarah works as a retail manager earning $22 per hour. She works 40 regular hours per week and averages 5 overtime hours weekly at time-and-a-half. She works 50 weeks per year with 2 weeks of vacation.

Given:

Hourly Wage = $22.00
Hours Per Week = 40
Weeks Per Year = 50
Overtime Hours = 5
Overtime Multiplier = 1.5

Calculation:

Regular Pay = $22 × 40 × 50 = $44,000

Overtime Pay = $22 × 1.5 × 5 × 50 = $8,250

Total Annual Salary = $44,000 + $8,250 = $52,250

Result: Sarah's total annual salary is $52,250, which breaks down to $4,354.17 per month or $1,045 per week.

Why This Calculation Matters

Practical Applications

Comparing job offers with different pay structures
Budgeting and financial planning
Determining if overtime is worth your time
Negotiating salary during job interviews

Key Benefits

Helps visualize total compensation package
Enables fair comparisons between opportunities
Assists in setting financial goals
Provides clarity for loan applications

Common Mistakes & Tips

The calculated salary represents your gross income before taxes. Your take-home pay will be lower after federal, state, and local taxes, as well as deductions for Social Security, Medicare, and other benefits. A general rule is to expect 20-30% less in take-home pay depending on your tax bracket and location.

When comparing job offers, don't focus solely on the hourly wage. Consider the total compensation package, including health insurance, retirement contributions, paid time off, bonuses, and other perks. These benefits can add significant value to your overall compensation beyond the base salary.

Be conservative when estimating overtime hours. Many jobs that offer overtime don't guarantee it consistently. Budget based on your regular hours, and consider overtime as a bonus rather than part of your expected income. This approach will help you avoid financial strain if overtime hours decrease.

Frequently Asked Questions

Hourly employees are paid for the exact number of hours they work, with overtime pay (typically 1.5x) for hours over 40 per week. Salaried employees receive a fixed amount regardless of hours worked, though they may be exempt from overtime pay. Hourly positions often offer more flexibility in scheduling, while salaried positions typically provide more predictable income and often include better benefits.

According to the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at a rate of at least 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. Some employers offer higher rates (double or triple time) for holidays or special circumstances. Certain industries and positions may be exempt from these requirements.

Not necessarily. When comparing compensation, consider the total package including benefits, work-life balance, job security, and career growth potential. A lower salary with excellent health benefits, retirement matching, and paid time off might provide more value than a higher hourly wage with no benefits. Also consider the consistency of income—salaried positions provide predictable paychecks, while hourly positions might fluctuate based on scheduling and available hours.

References & Disclaimer

Financial Disclaimer

This calculator provides estimates based on the information you input. It does not account for taxes, deductions, or other variables that may affect your actual take-home pay. The calculations are for informational purposes only and should not be considered financial advice. Consult with a financial professional for personalized advice.

References

U.S. Department of Labor - Minimum Wage - Information on federal minimum wage and overtime requirements
IRS - Topic No. 751 Social Security and Medicare Withholding Rates - Current tax withholding rates for Social Security and Medicare
Bureau of Labor Statistics - Occupational Employment Statistics - Wage data by occupation and location

Accuracy Notice

This calculator provides gross income estimates before taxes and deductions. Actual take-home pay will vary based on your tax filing status, state and local taxes, health insurance premiums, retirement contributions, and other deductions. The calculator does not account for bonuses, commissions, or other variable compensation that may affect your total income.

About the Author

Kumaravel Madhavan

Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.

Connect with LinkedIn

Tags:

finance personal-finance hourly wage salary converter loan tax

Related Calculators