A salary calculator converts an hourly wage into an annual salary (or weekly/monthly gross) using the standard 52-week year. Enter your hourly rate and weekly hours; if you take unpaid time off, subtract those weeks from the paid total.
Useful for comparing hourly job offers against salaried offers, evaluating contract / freelance rates against a target salary, planning a career move, or just understanding what an hourly rate "really" pays in annual terms. The output is gross, before taxes and deductions.
Key takeaway
A clean rule for converting hourly rate to a quick annual estimate is "× 2,000", a 40-hour week × 50 weeks (assuming two unpaid weeks). So $25/hour × 2,000 = $50,000/year, very close to the precise 52-week figure of $52,000. The 2,000-hour year is the de facto US labor standard for full-time workers.
How it's calculated
The math:
weekly = hourly × hours_per_week annual = weekly × (52 − unpaid_weeks) monthly = annual ÷ 12
Conversion the other way (annual to hourly): divide by 52 × hours_per_week (or by 2,080 for a standard 40-hour, 52-week year). A $100,000 annual salary works out to $48.08/hour at 40 hours/week.
Note this calculator returns gross. To estimate take-home (net), expect roughly 25-35% of gross to go to federal/state income tax, FICA, and benefits in the US (varies by state, filing status, and benefit elections). High earners in California or New York can see closer to 40-45% effective deductions; low earners in no-income-tax states (Texas, Florida) can see closer to 15-20%. State of residence also drives major fixed costs beyond income tax: see our state-by-state mortgage study for how PITI on the same $400K home varies by more than $650/month across the 50 states.
Source: Standard wage arithmetic, rate × hours × paid weeks
Examples
$25/hour, 40 hours/week, 0 unpaid weeks
- Hourly rate $25
- Hours per week 40 hr
- Unpaid weeks per year 0 wk
$25/hr at 40 hours/week works out to $52,000 annual gross, the canonical "$25 = $52K" reference point. This assumes paid vacation (the worker is paid all 52 weeks). If two weeks are unpaid, the annual drops to $50,000.
$45/hour contract, 30 hours/week, 4 unpaid weeks
- Hourly rate $45
- Hours per week 30 hr
- Unpaid weeks per year 4 wk
A $45/hr contract at 30 hours/week with 4 unpaid weeks (typical independent contractor) returns $64,800 annual gross. That comparison-loads to a salaried offer of roughly $80-85K when you account for 25% for benefits and self-employment tax burden the contractor faces, useful for negotiating equivalent offers.
Frequently asked questions
How do I convert hourly to annual salary?
Multiply hourly rate × hours per week × paid weeks. Standard full-time math: rate × 40 × 52 for a paid-vacation employee. Quick mental shortcut: × 2,000 ≈ annual (close to the precise 2,080). For a non-standard schedule, adjust the hours and weeks to match. Subtract any unpaid weeks from 52.
Does this include taxes or just gross?
Just gross, the figure before federal/state income tax, FICA (Social Security + Medicare), and benefit deductions. To estimate take-home, expect 25-35% off gross for typical US workers; the exact percentage depends on state, filing status, retirement contributions, and health-insurance elections. A paycheck calculator that incorporates your W-4 will give a better take-home estimate.
Should I count overtime or bonuses?
It depends on the comparison. For a base-pay-vs-base-pay comparison, exclude bonuses and overtime, those vary year to year and aren't guaranteed. For a total-comp comparison, include them at expected (or average) levels. If overtime is regular and predictable in your role, factor it into the hours-per-week input rather than the rate.
How do I compare a salaried offer to a freelance hourly rate?
Two adjustments matter. First, add 25-30% to the salaried number to account for the value of benefits (health insurance, retirement match, PTO, paid holidays) that freelancers buy themselves. Second, subtract self-employment tax from the freelance side, contractors pay both halves of FICA (15.3% vs. the 7.65% an employee pays). A $100K freelance rate roughly equals a $115-130K salaried offer once both sides are loaded in.
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