How to Calculate Your Salary From Hourly Pay (Free)

Is that hourly rate actually a good salary? And how does a yearly figure translate into what you earn each week? Comparing job offers means putting pay on the same footing. This guide shows the formulas to convert hourly wage into weekly, monthly and annual pay and back again, with a clear example. To get the numbers instantly, use the free Salary Calculator — enter your rate and hours and see your gross pay across every period, right in your browser.

The hourly-to-salary formula

Converting between pay periods is just multiplication and division. The core formula is:

Annual salary = hourly rate x hours per week x weeks per year

From there:

• Weekly pay = hourly rate x hours per week
• Monthly pay = annual salary / 12
• Annual to hourly = annual salary / (hours per week x weeks per year)

Most full-time roles assume 40 hours a week and 52 weeks a year, though you can adjust both to match your situation.

How to use the Salary Calculator

Quick and flexible:

1. Open the Salary Calculator.
2. Enter your hourly wage (or annual salary to go the other way).
3. Set your hours per week.
4. Set the weeks worked per year.
5. Read your pay as hourly, weekly, monthly and annual figures.

Adjusting hours or weeks updates everything instantly, so part-time and seasonal schedules are easy to model.

A worked example

Suppose you earn 25 per hour, work 40 hours a week, and 52 weeks a year.

• Weekly = 25 x 40 = 1,000
• Annual = 1,000 x 52 = 52,000
• Monthly = 52,000 / 12 = about 4,333

Going the other way, a 60,000 salary at the same hours and weeks works out to 60,000 / (40 x 52) = about 28.85 per hour. These are gross figures — taxes and deductions come out separately.

Pay-period conversions at a glance

Assuming 40 hours a week and 52 weeks a year, here is how the periods relate:

If you work fewer weeks (say 48 with unpaid leave) or different hours, plug those in for an accurate result.

Important: gross versus net pay

The calculator gives gross pay — your earnings before deductions. Your actual take-home (net) pay is lower because of:

• Income tax
• Social security or national insurance contributions
• Pension or retirement contributions
• Health insurance and other withholdings

These vary by country, state and personal circumstances, so a salary calculator cannot predict your exact net pay. Use the gross figure to compare offers on equal terms, then estimate deductions for your location.

Comparing a salaried offer to an hourly contract

Putting a salary and an hourly rate side by side is the most useful thing this tool does, but a fair comparison needs more than the headline numbers. Convert both to the same period first, then weigh the differences that pay alone does not show.

A 60,000 salary works out to about 28.85 an hour at 40 hours over 52 weeks. So a contract offering 35 an hour looks like a clear raise — but salaried roles often include paid holiday, sick leave, employer pension contributions, and health benefits that a contractor must fund themselves. Contractors also typically get no paid time off, so the weeks they do not work are unpaid, lowering the effective annual figure. A common rule of thumb is that an hourly contract rate needs to be noticeably higher than the salaried equivalent just to break even once benefits and unpaid gaps are counted. Use the Salary Calculator to get both onto an annual basis, then adjust for benefits.

Accounting for overtime, unpaid leave and part-time hours

The basic formula assumes a steady 40-hour week for all 52 weeks, but real schedules rarely match that, and small adjustments change the annual figure a lot.

• Overtime. Hours beyond your standard week are often paid at 1.5x. If you regularly work 45 hours, the extra 5 at time-and-a-half add meaningfully to annual pay.
• Unpaid leave. Two weeks of unpaid time off means you earn from 50 weeks, not 52. At 25 an hour and 40 hours, that is 2,000 less per year.
• Part-time hours. Drop to 25 hours a week and the same 25 rate yields 32,500 a year rather than 52,000.
• Paid holiday. If your leave is paid, keep 52 weeks; if not, reduce the weeks figure.

Plug your actual hours and weeks into the calculator rather than the defaults to get a number that reflects how you really work.

Common salary mistakes to avoid

A few errors distort pay comparisons:

• Confusing gross with net. The calculator shows gross pay; your take-home is lower after tax and other deductions, which differ by location.
• Assuming 52 paid weeks. Unpaid leave or seasonal gaps mean fewer paid weeks, so reduce the weeks figure for an honest annual total.
• Ignoring benefits when comparing offers. A lower salary with strong pension, health cover and paid leave can beat a higher one without them.
• Forgetting overtime rules. If overtime is paid at a premium, leaving it out understates your earnings.
• Comparing different periods directly. Always convert both offers to the same period — annual is usually clearest — before judging which pays more.

When to use it and where to go next

This tool is ideal for comparing a salaried offer against a contract hourly rate, budgeting from an hourly job, or working out part-time earnings. For tracking hours worked across a week, the Time Card Calculator adds them up, and to plan what to do with your pay, the Savings Calculator projects your balance over time.

The Salary Calculator is free, needs no sign-up, and runs locally in your browser, so the figures you enter stay private on your device. Browse more free calculators or see all tools.