Hourly to Salary Calculator

How to Convert Hourly Wages to an Annual Salary

Converting hourly earnings into annual salary figures allows you to accurately compare job offers, calculate freelance billing benchmarks, and forecast annual budgets. Because work schedules, paid time off, and overtime hours fluctuate, accurate conversions require evaluating both standard working hours and paid leave policies.

Standard Working Hour Baselines

In standard employment models, full-time employment is defined as 40 hours per week over 52 calendar weeks:

Accounting for Paid Time Off (PTO) and Holidays

Under standard employment agreements, paid vacation days and statutory paid holidays are already included within your 52 paid weeks (e.g. $25/hr × 40 hrs/wk × 52 wks = $52,000 gross). They are not added on top of the 52 weeks, preventing accidental double-counting. If you take unpaid leave or work on an hourly contractor basis without PTO, enter your unpaid weeks off to accurately deduct non-working time from your annual gross earnings.

Worked Example

Consider an hourly employee earning $35.00/hour, working 40 hours per week with 2 weeks of paid vacation:

Assumptions & Practical Notes

All conversion values represent pre-tax gross compensation. Net take-home pay will be lower depending on federal, state, and local income taxes, social security contributions, healthcare deductions, and retirement contributions.