Finance

How to Convert Hourly to Salary: Quick Calculator & Formula

Person counting US dollars, using a calculator and laptop, with financial documents on a wooden desk.
Photo: Tima Miroshnichenko / Pexels

Our free hourly to salary calculator converts an hourly wage to annual, monthly or weekly pay in seconds. This guide explains the straightforward maths behind it and when you might need it—whether you're reviewing a job offer or planning a budget with irregular hours.

Understanding hourly to salary calculator

Start with what you’re converting. Your hourly rate is what you earn per hour. To get your yearly salary, multiply that by your typical hours in a year. Most people work 2,080 hours a year—40 hours a week over 52 weeks. So at £12 an hour, your gross salary is £24,960 (£12 × 2,080).

Holiday and sick leave often add to that figure. If you get 28 days of paid holiday, that’s 224 extra hours (28 days × 8 hours). Your total hours rise to 2,304 (2,080 + 224), which at £12 an hour comes to £27,648 a year. Divide the yearly total by 52 for weekly pay, or by 12 for monthly pay.

Annual Income Comparison: Hourly vs. Salary31,200$15/hour (40 hrs/week)41,600$20/hour (40 hrs/week)52,000$25/hour (40 hrs/week)60,000$60000 annual salary80,000$80000 annual salary100,000$100000 annual salaryUSD per year
Annual Income Comparison: Hourly vs. Salary

How to work it out, step by step

  1. Enter your hourly wage.
  2. Enter how many hours you work per week.
  3. See your annual, monthly and weekly pay.
FormulaAnnual = hourly × hours/week × 52 weeks

Hourly vs. Salary: Key Financial Differences

FactorHourly WorkerSalaried Employee
Pay StructurePaid per hour workedFixed annual pay, regardless of hours
Overtime PayOften eligible for 1.5x pay after 40 hoursNo overtime pay (exempt employees)
BenefitsMay qualify for overtime and hourly benefitsOften includes benefits like paid time off and retirement plans
StabilityIncome varies with hours workedPredictable, consistent paycheck
Tax WithholdingTaxes deducted per paycheck based on hoursTaxes deducted from fixed salary

Why it matters

The most common error is comparing a £12 hourly job to a £25,000 salary without checking the hours. A £25k salary for a 40-hour week pays the same as £12 an hour. The real gap comes from overtime, shift allowances or pension contributions that aren’t always clear in the advertised figures.

Free tools for this

ToolWhat it does
Hourly to Salary CalculatorConvert your hourly wage into annual, monthly and weekly pay.

Try the Hourly to Salary Calculator

Skip the manual maths — enter your numbers and get the answer instantly.

Open the Hourly to Salary Calculator →

Good to know

Small differences in interest rate, term or timing can add up to large sums over the years. Before committing to any financial decision, run a few different scenarios so you can see the full picture and choose with confidence.

Key takeaways

  • Multiply your hourly rate by 2,080 to get a basic annual salary before any extras.
  • Add paid holiday hours to the total if you get more than the statutory minimum.
  • Always compare gross figures—before tax and deductions—when weighing job offers.

Frequently asked questions

Is this gross pay or take-home pay?

Gross — before any deductions at all. Income tax, social-security or national-insurance contributions, pension contributions and any health or benefit premiums all come out of this figure. Your actual take-home depends on your country, your allowances and your circumstances, so no calculator can give it from a wage alone.

Does it account for unpaid leave?

No — it assumes 52 paid weeks a year. If some of your weeks are unpaid, work out your paid weeks and reduce the hours-per-week figure proportionally, or multiply the weekly figure by your real number of paid weeks instead.

Why 52 weeks and not something else?

A year is 52 weeks plus a day or two, so 52 is the standard convention — 40 hours a week over 52 weeks gives the familiar 2,080 hours often used for full-time work. Some payroll systems use 52.14 weeks or count actual working days, which produces marginally different numbers.

How do I convert a salary back to an hourly rate?

Divide the annual salary by 52 to get weekly pay, then divide that by your hours per week. On a 40-hour week you can also divide the annual figure by 2,080 for the same result.

Does it handle overtime?

Not directly. It applies one rate to all hours. If you regularly work overtime at a premium rate, calculate the base hours and the overtime hours separately and add the two annual figures together.

References & further reading