Free Hourly to Salary Calculator

Comparing an hourly gig to a salaried position? Convert between hourly and annual pay in seconds -- with overtime, PTO, and real-world hours factored in.

Features

  • Converts hourly rate to annual, monthly, and weekly salary
  • Converts annual salary back to effective hourly rate
  • Adjusts for actual hours worked per week (not just 40)
  • Factors in paid time off and holidays
  • Includes overtime calculations at 1.5x and 2x rates
  • Shows side-by-side comparison of hourly vs. salaried scenarios
  • Accounts for benefits value in salaried positions

How It Works

  1. 1Enter your hourly rate or annual salary
  2. 2Set your actual hours worked per week
  3. 3Add paid time off days and holidays
  4. 4Optionally include overtime hours and rate
  5. 5Review the full conversion -- annual, monthly, biweekly, and weekly
  6. 6Compare against the equivalent hourly or salaried position

Frequently Asked Questions

The standard formula is hourly rate x hours per week x 52 weeks. So $25/hour x 40 hours x 52 weeks = $52,000/year. But real life isn't that simple -- you might work 45 hours, get overtime for 5 of them, and take 3 weeks of unpaid time off. Our calculator handles all of that so you get an accurate number, not a textbook estimate.
$60,000 / 2,080 hours (40 hrs x 52 weeks) = $28.85/hour. So not quite. But here's what most people miss: salaried workers often work 45-50 hours per week without overtime pay, which drops the effective hourly rate further. A salaried employee working 50 hours averages $23.08/hour at $60k. That changes the comparison significantly.
Yes -- this is where salaried positions often pull ahead. Health insurance, 401k match, paid time off, and other benefits can add $15k-$30k in value. An hourly contractor at $35/hour might seem higher than a $65k salary, but once you subtract self-employment tax, health insurance, and unpaid days off, the salaried position could actually pay more.
Federal law requires overtime pay at 1.5x for hours over 40/week for non-exempt employees. If you regularly work overtime, this can significantly boost your effective annual income. Our calculator lets you input average overtime hours to get an accurate total. Some states have additional overtime rules -- California, for example, also requires overtime for hours over 8 in a single day.
If you're a 1099 contractor, remember to subtract 15.3% for self-employment tax (the employer's share of FICA that you're now responsible for). You also need to cover your own health insurance, retirement, and time off. A general rule: a contractor should charge roughly 30-40% more per hour than the equivalent salaried employee to break even.

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Created By

InterviewTips.AI Team

Interview Preparation Experts

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