Convert your hourly wage to annual salary with overtime and paid time off calculations. Get detailed breakdowns of your earnings across different time periods.
Standard is 52 weeks
Paid at 1.5× regular rate
Vacation, sick days, holidays
Converting hourly wages to annual salary helps you understand your total earning potential, compare job offers, and plan your finances effectively. The basic calculation multiplies your hourly rate by the number of hours you work per week and the number of weeks you work per year.
The standard formula is: Annual Salary = Hourly Rate × Hours per Week × Weeks per Year. For a typical full-time position (40 hours/week, 52 weeks/year), this equals 2,080 working hours annually. However, actual earnings can vary based on overtime hours, paid time off, holidays, and unpaid leave.
Annual Salary:
Hourly Rate × Hours/Week × 52
Example: $25 × 40 × 52 = $52,000
Monthly Salary:
(Hourly Rate × Hours/Week × 52) ÷ 12
Example: $52,000 ÷ 12 = $4,333
Weekly Salary:
Hourly Rate × Hours/Week
Example: $25 × 40 = $1,000
Overtime Rate:
Hourly Rate × 1.5 (time and a half)
Example: $25 × 1.5 = $37.50/hour
Annual with Overtime:
Base Salary + (OT Hours × OT Rate × 52)
Example: $52,000 + (5 × $37.50 × 52) = $61,750
With Unpaid Time Off:
Annual Salary - (Days Off × 8 × Hourly Rate)
Example: $52,000 - (10 × 8 × $25) = $50,000
Average hourly rates vary significantly across industries. Here's a comparison of typical hourly wages and their annual salary equivalents:
| Industry | Entry Level | Mid-Level | Senior Level | Annual (Mid) |
|---|---|---|---|---|
| Retail | $12-15/hr | $15-20/hr | $20-30/hr | $31,200-$41,600 |
| Food Service | $10-13/hr | $13-18/hr | $18-25/hr | $27,040-$37,440 |
| Healthcare | $15-20/hr | $25-40/hr | $45-70/hr | $52,000-$83,200 |
| Construction | $15-20/hr | $25-35/hr | $40-60/hr | $52,000-$72,800 |
| Technology | $20-30/hr | $40-60/hr | $70-100/hr | $83,200-$124,800 |
| Manufacturing | $14-18/hr | $20-30/hr | $35-50/hr | $41,600-$62,400 |
Note: Annual calculations based on 40-hour work week, 52 weeks per year (2,080 hours). Actual earnings may vary with overtime and benefits.
Overtime significantly increases annual earnings for hourly workers. Here's how different overtime schedules affect total compensation:
| Base Rate | No OT (40hrs) | 5hrs OT/week | 10hrs OT/week | OT Increase |
|---|---|---|---|---|
| $15/hour | $31,200 | $37,050 | $42,900 | +37.5% |
| $20/hour | $41,600 | $49,400 | $57,200 | +37.5% |
| $25/hour | $52,000 | $61,750 | $71,500 | +37.5% |
| $30/hour | $62,400 | $74,100 | $85,800 | +37.5% |
| $40/hour | $83,200 | $98,800 | $114,400 | +37.5% |
Overtime calculated at 1.5× regular rate (time and a half). Consistent overtime can increase annual earnings by over one-third.
Paid time off (PTO) is a crucial factor when converting hourly wages to annual salary. Salaried employees typically receive paid vacation, sick days, and holidays, while hourly workers may not. This can significantly affect total annual compensation.
PTO Scenarios for $25/hour Worker:
Entry-Level Positions:
Experienced Positions:
Retail employee earns $18/hour, works 45 hours/week (5 hours overtime):
Result: Overtime adds $7,020 annually (18.7% increase over base pay)
Nurse earns $35/hour, works 40 hours/week, takes 3 weeks unpaid vacation:
Result: Unpaid vacation reduces annual earnings by $4,200 (5.8% reduction)
Student works $16/hour, 20 hours/week during school (36 weeks), 40 hours/week during summer (16 weeks):
Result: Variable schedule yields $21,760 annually, equivalent to 26.15 hours/week year-round
Freelancer charges $75/hour, works 25 billable hours/week, 48 weeks/year (4 weeks vacation):
Result: $90k gross becomes $56,730 net after taxes and expenses (equivalent to $27.27/hour employee rate)
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