Hourly to salary and salary to hourly calculator

How to convert hourly pay to salary

A full-time job in the US is usually 40 hours a week, 52 weeks a year: 2,080 paid hours. That is the number employers use to turn an hourly wage into an annual salary, and the reverse. All amounts here are gross pay, before taxes.

\[ \begin{gathered} \text{annual salary} = \text{hourly rate} \times \text{hours per week} \times \text{weeks per year} \\ \text{monthly pay} = \dfrac{\text{annual salary}}{12} \\ \text{hourly rate} = \dfrac{\text{annual salary}}{\text{hours per week} \times \text{weeks per year}} \end{gathered} \]

If you work 35 hours, replace 40 with 35. Hours above 40 a week are overtime for most non-exempt workers; our overtime calculator covers that.

Hourly wage to salary chart (40 hours a week)

The federal minimum wage is $7.25 an hour, or $15,080 a year at full time, but many states and cities set a higher floor.

Part-time, unpaid weeks and salary to hourly

For a part-time schedule such as 25 hours a week, change the hours field: $18 an hour comes to $23,400 a year. If you take unpaid time off, lower the paid weeks: 50 paid weeks at $25 an hour and 40 hours is $50,000, not $52,000. Compare job offers with the hourly equivalent, since a salary that looks higher can mean more hours: $62,400 for 45 hours a week is only $26.67 an hour.

Hourly to salary calculator: more examples and reverse math

Here are useful conversions. At $22 an hour, multiply by 2,080 to get $45,760 a year. At $35, the total is $72,800. In the other direction, a salary of $60,000 divided by 2,080 gives about $28.85 an hour.

So you can compare two offers stated differently. For example, $65,000 a year equals $31.25 an hour. However, never mix gross and net in the same comparison.

Hourly to salary calculator: overtime and time off

The 2,080 hours assume no overtime and no unpaid weeks. If you work 45 hours, the extra 5 hours may earn time and a half under federal law for non-exempt employees. Also, unpaid time off lowers the total, as shown for 50 paid weeks. A part-time schedule of 25 hours a week gives 1,300 hours a year.

Therefore, check the schedule on your offer letter before converting. To compute the extra pay, use the overtime calculator. To track weekly hours, open the time card calculator.

Hourly to salary calculator: from gross pay to take-home pay

An hourly rate does not tell you what you keep. First, convert the rate to a gross salary. Then estimate withholding with the paycheck calculator. Next, check income tax with the federal income tax calculator.

Finally, if you work for yourself, compare with the self-employment tax calculator. That way, you move from an hourly rate to a realistic budget. These numbers are estimates.

Hourly to salary calculator: comparing two job offers

To compare two offers, convert both to the same unit. First, note the hourly rate or the salary. Then check the weekly schedule. Next, compute the equivalent rate. For example, $52,000 for 40 hours equals $25 an hour, while $54,000 for 45 hours equals only $23.08 an hour on a 2,340 hour year.

So an offer that looks higher on paper may hide more hours. In contrast, a salary with a signing bonus changes the first-year total. Also, compare benefits such as health insurance and paid time off.

Hourly to salary calculator: common errors

A few errors come up often. First, people multiply by 4 weeks per month instead of 4.33. That loses about 8% of the monthly total. Second, they mix gross and net pay. Third, they forget paid days off. To avoid these errors, use 2,080 hours a year for full time and divide by 12 for the monthly figure, which is 173.33 hours.