What this calculator measures
Hourly-to-salary conversion multiplies hourly pay by paid hours per week and paid weeks per year. The result is gross pay before deductions and does not by itself make two compensation packages equivalent.
Use paid weeks rather than automatically entering 52 when unpaid leave, seasonal layoffs, or school-year schedules apply. Include overtime separately when the rate or hours differ from regular time.
Common use cases
Use this model when the inputs describe the same decision, period and customer or product scope.
- Translate an hourly offer into weekly, monthly and annual pay using explicit work assumptions.
- Compare employee, contractor and part-time scenarios without assuming every role has 52 paid weeks.
- Adjust hours, weeks and unpaid time before comparing benefits, taxes, leave or business costs.
Formula
The result is gross pay before taxes, benefits, unpaid leave, overtime premiums, or contractor expenses.
Formula breakdown
- Hourly rate, paid weekly hours and paid weeks determine the simple annualized amount.
- Overtime, unpaid leave, bonus and benefits are separate considerations.
Worked example
At $28 per hour, 40 hours per week, and 52 paid weeks, weekly gross pay is $1,120 and annual gross pay is $58,240. Average monthly gross pay is $4,853.33, although actual paychecks depend on payroll frequency.
Scenario comparison
$30/hour × 40 hours × 52 weeks annualizes to $62,400.
At 46 paid weeks, the same rate annualizes to $55,200.
How to interpret the result
Compare benefits, paid leave, bonuses, retirement contributions, insurance, taxes, commuting, schedule stability, and overtime rules in addition to annual gross pay.
For an employer-cost estimate, add payroll taxes, benefits, equipment, recruiting, and overhead. This calculator only converts the worker's entered hourly rate.
What a good result looks like
A fair comparison includes total compensation and expected paid time.
Employer cost and worker gross pay are different measures.
Common mistakes
- Assuming 2,080 paid hours when substantial unpaid time is expected.
- Comparing contractor revenue directly with employee salary.
When this metric can mislead you
Overtime, bonus, benefits and taxes can materially change the economics.
The annualized amount is not take-home pay.
How to use the result in a decision
Use it as a first-pass compensation conversion.
Add benefits, taxes, unpaid time and expenses for real job-versus-contract comparisons.
Assumptions and limitations
- The hourly rate applies to every entered paid hour.
- Hours per week and paid weeks remain constant.
- Overtime premiums, bonuses, tips, and commissions are excluded.
- Taxes, deductions, benefits, and employer costs are not modeled.