Project annual earnings from an hourly rate. Include overtime and see how extra hours compound into meaningful income across 3 scenarios.
$83,200
$40/hr × 2,080
$91,000
with 5hrs OT/wk
×1.5
overtime rate
$20/hr
$41,600/yr
$30/hr
$62,400/yr
$40/hr
$83,200/yr
$50/hr
$104,000/yr
$75/hr
$156,000/yr
All at 40 hrs/week, 52 weeks — enter your rate below
Hourly to Salary Calculator
See your earning potential across 3 work scenarios — full-time, part-time, and with overtime — plus your total compensation package value including PTO and benefits.
Method basis: hourly rate × actual weekly hours, overtime multiplier, and pay-period conversion · Methodology
Try it:
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Output is gross arithmetic. Does not model taxes, unpaid weeks, shift volatility, or overtime stability. Scroll down to see your total compensation package including PTO value and estimated benefits.
Divide your annual salary by 2,080 (the standard 40 hours × 52 weeks). For a $60,000 salary, that's $28.85/hour. This assumes a 40-hour workweek with no overtime — your actual hourly equivalent depends on how many hours you actually work.
Does the calculator account for benefits and perks?
No — it converts salary to hourly based on cash compensation only. For a full picture, add the monetary value of health insurance, retirement matches, PTO, and other perks. A $60K salary with great benefits might be worth more than a $70K job with none.
Should I use 2,087 or 2,080 hours for my calculation?
2,080 (40 × 52) is the standard. 2,087 accounts for leap years and is more precise for exact calculations, but the difference is negligible (0.3%). For most purposes, 2,080 gives a clean, accurate result.
What is a good hourly rate in the US?
The federal minimum wage is $7.25/hour, but many states and cities set higher minimums. The median hourly wage in the US is approximately $22–$24/hour as of 2026. Skilled professionals in tech, healthcare, and finance often earn $40–$100+/hour.
Do I owe overtime if I work more than 8 hours in a day?
Federal law triggers overtime after 40 hours per week, not per day. However, California, Alaska, and a few other states require daily overtime after 8 hours. Check your state's labor laws for specifics.
How is this different from the Salary Calculator?
The <a href=\"/tools/salary-calculator\">Salary Calculator</a> converts an annual salary down to hourly and other periods. This tool works in the opposite direction — starting from an hourly rate and projecting annual earnings, including overtime.
Now see a clearer after-tax estimate for that annual salary.
You landed a $28/hour gig — congratulations! But what does that actually mean for your bank account over the next 12 months?
Most people have a rough sense that full-time at 40 hours adds up to around $50-60K annually at that rate, but the math
gets fuzzy fast when you factor in overtime, part-time weeks, or unpaid time off.
The truth is, knowing your true annualized income changes how you negotiate, budget, and plan.
It's the difference between "I make decent money" and actually understanding your financial runway.
Our salary-to-hourly converter works in reverse if you ever need to flip the calculation,
and the income percentile finder helps you see how your earnings stack up against others in similar roles nationwide.
Think beyond base pay
Your hourly wage is just the starting point. When comparing job offers or planning your future, use our take-home pay calculator to see your actual net income after taxes, then factor in benefits and PTO value with our salary comparison tool for a true apples-to-apples picture.
How to Read Your Annualized Wage Result
Annual figure = hourly rate × hours per week × weeks per year, with overtime hours multiplied by the selected rate.
What This Tool Does Not Model
Taxes, withholdings, and benefit deductions
Unpaid weeks, seasonal interruptions, or variable demand unless you change the hours inputs yourself
State-specific daily overtime rules
Contractor self-employment tax
If a large share of your projected annual pay depends on overtime, validate that assumption carefully before treating the number as stable income.
The standard formula for converting an hourly rate to annual salary assumes a full-time work schedule
of 40 hours per week for 52 weeks of the year, totaling 2,080 working hours.
Annual Salary = Hourly Rate × Hours per Week × Weeks per Year
For example, a $25/hour wage at 40 hours/week equals
$52,000 per year before taxes. Add overtime and the number climbs quickly.
Understanding Overtime in Your Annual Calculation
Under the Fair Labor Standards Act (FLSA), most non-exempt employees must receive overtime pay
at 1.5× their regular rate for all hours worked beyond 40 in a workweek.
Some employers offer double-time (2×) for holidays or excessive hours.
If you regularly work 5 overtime hours per week at $25/hour with 1.5× overtime pay:
Regular pay: $25 × 40 × 52 = $52,000
Overtime pay: $37.50 × 5 × 52 = $9,750
Total: $61,750/year
Freelancers and contractors: your effective hourly rate should be higher than an employee's to account for self-employment taxes (~15.3%), no paid time off, and your own benefits costs. Use this calculator as your baseline, then add 25-35% for a realistic freelance rate.
The federal minimum wage is $7.25/hour, but many states and cities set higher minimums. The median hourly wage in the US is approximately $22–$24/hour as of 2026. Skilled professionals in tech, healthcare, and finance often earn $40–$100+/hour.
Typical Hourly Rates by Industry (2026)
Not sure if your rate is competitive? Here's a quick reference for median hourly wages across
common sectors in the United States, based on Bureau of Labor Statistics data:
Industry
Median Hourly
Annual Equivalent
Software & IT
$52 – $75
$108K – $156K
Registered Nursing
$38 – $50
$79K – $104K
Skilled Trades
$22 – $38
$46K – $79K
Retail & Food Service
$14 – $20
$29K – $42K
All Occupations (median)
$23
$47,840
Hourly vs Salaried: What Changes?
Converting to a salaried role at the same annual pay isn't always a straightforward upgrade.
Here are the key differences that affect your effective compensation:
Overtime eligibility: Hourly workers are usually the clearest case for 1.5× overtime under FLSA. Salaried workers may still qualify or be exempt depending on the current federal salary-basis threshold, their duties, and any state-specific rules.
Predictability: Salaried roles guarantee fixed income regardless of hours. Hourly workers earn less in short weeks but more during overtime periods.
Benefits access: Salaried positions more frequently include health insurance, 401(k) matching, and paid time off — add 20–30% to compare total compensation fairly.
Taxes: Both hourly and salaried workers pay the same federal income tax rates. The difference is only in how payroll withholding is calculated each period.
Quick rule of thumb: divide any annual salary by 2,000 for a fast hourly estimate. A $60,000 salary ÷ 2,000 = $30/hour — close enough for quick job offer comparisons before you run the full numbers here.
