Hourly ↔ Salary Calculator
Convert between hourly rate and annual salary instantly. Customize hours and weeks worked.
Common Hourly to Annual Conversions
| Hourly Rate | Annual (40hr/wk) | Monthly | Typical Role |
|---|---|---|---|
| $25/hr | $52,000 | $4,333 | Entry-level retail/admin |
| $40/hr | $83,200 | $6,933 | Skilled trade / junior professional |
| $60/hr | $124,800 | $10,400 | Mid-level developer / consultant |
| $85/hr | $176,800 | $14,733 | Senior engineer / specialist |
| $120/hr | $249,600 | $20,800 | Principal engineer / manager |
How to Convert Hourly Rate to Annual Salary
The conversion formula is straightforward: multiply your hourly rate by the number of hours you work per week, then multiply by 52 to get your annual salary.
For a standard full-time position: $40/hour × 40 hours × 52 weeks = $83,200/year. If you work part-time or are evaluating a contract role, adjust the hours per week accordingly.
When comparing an hourly contract rate to a full-time salary offer, remember that contractors must self-fund benefits, taxes, and paid time off. A $60/hour contract rate is roughly equivalent to a $90,000–$100,000 salaried position once these factors are accounted for.
FAQ
How do I convert hourly to annual salary?
Multiply your hourly rate by the number of hours you work per week, then multiply by 52 (weeks per year). For a standard 40-hour week: Hourly × 40 × 52 = Annual Salary. A $40/hour rate equals $83,200 per year.
What is the standard number of working hours per year?
The standard full-time schedule is 40 hours/week × 52 weeks = 2,080 hours per year. However, accounting for 10 federal holidays gives approximately 2,000 hours. Contractors and freelancers often use 2,000 hours as their working baseline.
Does the hourly to salary calculator include overtime?
Our tool lets you customize hours per week. If you regularly work overtime (more than 40 hours/week), input your actual average hours. Note that salaried employees are often exempt from overtime pay, while hourly workers are typically entitled to 1.5× for hours over 40.
How do I compare a contract hourly rate to a full-time salary?
Contractors must account for self-employment tax (~15.3%), no employer benefits (health insurance, 401k), and unpaid time off. A general rule: your hourly contract rate should be 30–40% higher than a comparable full-time employee's effective hourly rate to achieve equivalent take-home pay.
What is the difference between gross and net pay?
Gross pay is your total salary before deductions. Net pay (take-home) is what you receive after federal income tax (22–37%), FICA/Social Security (7.65%), and state income tax (0–13.3% depending on state). Effective tax rates for most US workers range from 25–38% of gross income.