Hourly to Salary Calculator

What This Calculator Does

The Hourly to Salary Calculator is a powerful tool designed to help you convert your hourly wage into an accurate annual salary estimate. Whether you work regular hours or have overtime arrangements, this calculator factors in different pay rates and overtime tiers to provide a comprehensive breakdown of your true yearly, monthly, weekly, and even daily earnings. It is ideal for anyone curious about their annual compensation, budgeting, or considering a job offer.

By entering your hourly wage, hours worked, and any applicable overtime details, you can quickly see how your hourly pay translates into a range of salary figures. The calculator is user-friendly, flexible, and suited for workers, employers, and job seekers alike.

How to Use This Calculator

1. Enter your Hourly Wage: Input your standard hourly rate before taxes or deductions.
2. Specify Regular Hours per Week: Enter the number of standard hours you typically work in a week.
3. Input Overtime Details (if applicable):
   • Enter the number of overtime hours per week in the Overtime Tier 1 and/or Overtime Tier 2 fields.
   • For each overtime tier, provide the corresponding multiplier (e.g., 1.5 for "time and a half" or 2.0 for "double time").
4. Check or Adjust Weeks per Year: The default is usually 52 weeks, but you can adjust this if you work fewer weeks (for example, due to seasonal work or unpaid leave).
5. Review Calculated Results: Instantly see your total annual salary along with monthly, weekly, daily, and effective hourly rates. These outputs reflect both your regular and overtime earnings.

This calculator also allows you to reverse-calculate: enter an annual salary and see the implied hourly wage or vice versa. It is flexible for most general pay situations.

Definitions of Key Terms

Hourly Wage

The amount you earn for each hour of work, not including any overtime or bonuses.

Regular Hours per Week

The standard number of hours you work each week at your base hourly wage, not counting any overtime.

Overtime Tier 1

The number of weekly overtime hours paid at the first overtime rate multiplier (such as the first 10 hours above your regular schedule).

Tier 1 Multiplier

The rate at which Tier 1 overtime hours are paid. For example, 1.5 means you are paid "time and a half" for these hours.

Overtime Tier 2

Any additional weekly overtime hours paid at a higher multiplier, often for hours above the first overtime threshold.

Tier 2 Multiplier

The rate at which Tier 2 overtime hours are paid (e.g., 2.0 for "double time").

Annual Salary

The total amount you earn in a year from your regular and overtime hours combined.

Weeks per Year

The total number of weeks you work in a year, often 52 but can be adjusted for part-time or seasonal schedules.

Total Annual Salary

Your complete yearly earnings based on all provided inputs, including overtime.

Monthly Salary

Your average earnings per month, derived from your total annual salary.

Weekly Salary

Your average earnings per week, based on your annual salary and weeks worked.

Daily Salary

Your average daily earnings, assuming a standard workweek.

Effective Hourly Rate

Your actual average hourly earnings after accounting for all overtime, calculated as total annual salary divided by total hours worked.

Implied Hourly Rate

The hourly rate you would need to earn without overtime to reach your reported annual salary.

Calculation Methodology

The calculator uses your hourly wage, standard hours, overtime hours, and pay multipliers to determine your total annual salary and related figures. Here’s a detailed breakdown of how your salary is calculated:

Regular Pay = Hourly Wage x Regular Hours per Week x Weeks per Year

Tier 1 Overtime Pay = Hourly Wage x Tier 1 Multiplier x Overtime Tier 1 x Weeks per Year

Tier 2 Overtime Pay = Hourly Wage x Tier 2 Multiplier x Overtime Tier 2 x Weeks per Year

Total Annual Salary = Regular Pay + Tier 1 Overtime Pay + Tier 2 Overtime Pay

Monthly Salary = Total Annual Salary / 12

Weekly Salary = Total Annual Salary / Weeks per Year

Daily Salary = Weekly Salary / Days Worked per Week

Total Hours Worked = (Regular Hours per Week + Overtime Tier 1 + Overtime Tier 2) x Weeks per Year

Effective Hourly Rate = Total Annual Salary / Total Hours Worked

Implied Hourly Rate = Annual Salary / (Hours per Week x Weeks per Year)

Each variable is based on your unique work schedule and pay structure. This ensures that your annual salary reflects both regular and overtime pay, giving you the most accurate estimate possible.

Practical Scenarios

• Comparing Job Offers: You are considering two job offers, one with an hourly wage and another with a fixed salary. Use the calculator to convert the hourly wage to an annual figure and easily compare the total compensation for each role.
• Budget Planning: You want to know your monthly and weekly take-home pay to set up a personal budget. By entering your hours, overtime, and wage, the calculator provides a clear salary breakdown for more effective financial planning.
• Negotiating a Raise: When negotiating with your employer, you can input your desired annual salary to find out the equivalent hourly wage you should request.
• Seasonal or Part-time Work: You work only 40 weeks per year due to a seasonal job. Adjust the “Weeks per Year” field to see how your annual and monthly salary change based on your unique schedule.

Advanced Tips & Best Practices

• Include All Types of Overtime: If your employer offers multiple overtime pay rates, make sure to fill out both Tier 1 and Tier 2 fields to capture your full earning potential.
• Adjust for Unpaid Time Off: If you take unpaid leave or have planned time off, reduce the “Weeks per Year” accordingly for a more accurate annual salary reflection.
• Account for Holidays and Short Weeks: For jobs with variable hours or short weeks due to holidays, estimate your average weekly hours over the year rather than using the maximum possible.
• Reverse-Engineering Offers: Use the annual salary input to see the implied hourly wage, especially helpful when evaluating salaried job offers with different workweek expectations.
• Stay Updated on Labor Laws: Some regions have overtime regulations or limits. Always confirm overtime multipliers and thresholds with your employer or local labor authority to ensure accurate calculations.

Frequently Asked Questions (Optional)

Does the calculator account for taxes or deductions?

No, this calculator provides gross income calculations before taxes, benefits, and other deductions. For net income, consult your pay stub or use a separate tax calculator.

What if I work different hours each week?

For the most accurate results, use your average weekly hours over the year. If your hours fluctuate significantly, consider running the calculator multiple times with different scenarios.

Can I use this calculator if I am salaried?

Yes. Enter your annual salary and the average hours you work per week to see your implied hourly rate, as well as your breakdown by month, week, and day.