Hourly to Salary Calculator
Convert hourly wages to annual salary or salary to hourly rate instantly. Our free hourly to salary calculator includes adjustments for PTO, overtime, and flexible work schedules.
Input Details
Paid time off days (vacation, sick leave, holidays)
Calculation Results
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Our hourly to salary calculator makes it easy to convert between different pay structures. Whether you're negotiating a new job offer, planning your budget, or comparing compensation packages, this tool provides accurate calculations in seconds.
Converting Hourly Wage to Annual Salary
To calculate annual salary from hourly rate, simply multiply your hourly wage by the number of hours you work per week, then multiply by the number of weeks you work per year. Our calculator automatically factors in PTO days to give you a more accurate picture of your actual earnings.
For example, if you earn $25 per hour and work 40 hours per week for 50 working weeks (accounting for 2 weeks of PTO), your annual salary would be $50,000 ($25 × 40 × 50).
Converting Annual Salary to Hourly Rate
When converting salary to hourly rate, divide your annual salary by the total number of hours you work per year. This is particularly useful when comparing salaried positions to hourly jobs or determining if overtime compensation is competitive.
Remember that salaried employees often work more than 40 hours per week, which effectively reduces their hourly rate. Our calculator allows you to adjust for realistic working hours to get a true comparison.
Factors That Affect Your Calculations
Several factors can impact the accuracy of your hourly to salary conversion:
- Paid Time Off: Whether PTO is paid or unpaid significantly affects annual earnings
- Overtime: Hourly employees often earn time-and-a-half for overtime hours
- Benefits: Health insurance, retirement matching, and other benefits add to total compensation
- Taxes: Different tax treatments may apply to hourly vs. salaried employees
- Work Schedule: Actual hours worked may differ from contracted hours
When to Use This Calculator
This hourly to salary calculator is perfect for:
- Job seekers comparing different compensation offers
- Employers setting competitive salary ranges
- HR professionals calculating payroll budgets
- Freelancers determining project rates
- Anyone planning their financial future
For HR teams managing multiple employees, consider using a comprehensive HR platform like tinyteam that automates payroll calculations, tracks time off, and ensures compliance with labor laws.Learn more about automated time tracking.
Frequently Asked Questions
How do you calculate annual salary from hourly wage?
To calculate annual salary from hourly wage, multiply your hourly rate by the number of hours you work per week, then multiply by the number of weeks you work per year. Formula: Hourly Rate × Hours per Week × Weeks per Year = Annual Salary. For example, $25/hour × 40 hours × 52 weeks = $52,000 annually.
How do you convert salary to hourly rate?
To convert salary to hourly rate, divide your annual salary by the total number of hours you work per year. Formula: Annual Salary ÷ (Hours per Week × Weeks per Year) = Hourly Rate. For example, $52,000 ÷ (40 hours × 52 weeks) = $25/hour.
Should I include PTO days in salary calculations?
Yes, PTO days should be considered in accurate salary calculations. If you're paid for PTO days, use 52 weeks in your calculation. If PTO is unpaid, subtract PTO days from your working weeks. Most salaried employees are paid for PTO, while hourly employees may or may not be.
What's the difference between gross and net salary calculations?
This calculator shows gross salary (before taxes and deductions). Net salary is what you take home after taxes, health insurance, retirement contributions, and other deductions. Typically, net pay is 70-80% of gross pay, depending on your tax situation and benefits.
How many hours per year does a full-time employee work?
A full-time employee typically works 2,080 hours per year (40 hours × 52 weeks). However, this varies based on PTO, holidays, and actual hours worked. Many companies offer 2-4 weeks PTO plus holidays, reducing working hours to 1,960-2,000 hours annually.
