Hourly to Salary Converter
Convert an hourly wage to an equivalent annual salary, and vice versa.
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Convert Between Hourly and Salary Pay
Our Hourly to Salary Converter helps you easily translate your pay between hourly, weekly, monthly, and annual rates, including overtime considerations.
What is an Hourly to Salary Converter?
An Hourly to Salary Converter is a financial tool that allows employees and employers to easily translate between different pay structures. Whether you are evaluating a new job offer, considering a switch from hourly to salaried work, or simply want to understand your earnings on different time scales, this calculator provides a clear breakdown. It converts your pay rate into its equivalent annual, monthly, weekly, and daily earnings, and can also factor in overtime for a more complete financial picture.
How It Works: The Conversion Formulas
The calculator uses standard employment timeframes:
Annual Salary = Hourly Rate × Hours per Week × Weeks per Year
Hourly Rate = Annual Salary / (Weeks per Year × Hours per Week)
- Select Conversion Type: Choose whether you are converting from hourly to salary or vice versa.
- Enter Your Pay: Input your hourly rate or annual salary.
- Define Your Schedule: Specify your hours per week and weeks worked per year.
- Add Overtime (Optional): Include average weekly overtime hours for a more comprehensive analysis.
Interpreting Your Equivalent Earnings
The calculator provides a full breakdown of your earnings across different time periods. The **Annual Salary** is the standard benchmark for comparing job offers. The **Effective Hourly Rate** is particularly useful, as it shows your true hourly wage after factoring in overtime pay. Use these figures to budget, compare offers, and ensure you are being compensated fairly.
Common Compensation Myths
- Myth 1: Salary is always better than hourly. Not necessarily. An hourly employee is often entitled to overtime pay for working more than 40 hours a week, which can significantly boost earnings. Salaried employees are often exempt from overtime.
- Myth 2: A higher hourly rate always means more money. A high hourly rate for a job with inconsistent or few hours can result in less annual income than a lower hourly rate for a full-time, consistent position.
Frequently Asked Questions
How do you calculate hourly to salary?
To calculate an hourly wage to an annual salary, multiply the hourly rate by the number of hours worked per week, and then multiply that result by the number of weeks worked per year. The standard formula is: Hourly Rate × 40 hours/week × 52 weeks/year = Annual Salary.
How much is $20 an hour annually?
$20 an hour is equivalent to an annual salary of $41,600, assuming a standard 40-hour work week and 52 weeks per year ($20 × 40 × 52).
Is it better to be paid hourly or salary?
The choice between hourly and salary depends on your priorities. Hourly pay offers the potential for overtime pay but can have variable income. Salaried positions offer a consistent, predictable paycheck and often better benefits, but you typically do not receive extra pay for working more than 40 hours a week.
How do you convert annual salary to an hourly rate?
To convert an annual salary to an hourly rate, divide the salary by the number of weeks worked per year (typically 52), and then divide that result by the number of hours worked per week (typically 40). Our calculator can do this conversion for you instantly.
Tips for Evaluating Your Pay
- Consider Total Compensation: When comparing offers, look beyond the salary or hourly rate. Factor in the value of benefits like health insurance, retirement matching, and paid time off.
- Understand Overtime Rules: Know your rights regarding overtime pay. Most hourly workers in the U.S. are entitled to 1.5x their regular rate for hours worked over 40 in a week.
- Factor in Unpaid Time: Remember that a standard 52-week year includes paid holidays and vacation. If you are a freelancer, you'll need to account for unpaid time off when setting your rate.
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