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Pay & Tax

Hourly to Salary Converter

Convert between hourly, weekly, monthly and annual pay.

What it does. The quick version — hourly rate × 2,080 — assumes 40 hours a week for 52 weeks with no unpaid time off. That is right for a salaried employee and wrong for most hourly workers, because it counts holidays and sick days as paid. The gap is often several thousand a year.
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How to use Hourly to Salary Converter

  1. Enter either the hourly rate or the annual salary.
  2. Set your real weekly hours and paid time off.
  3. Read the equivalent figures across every period.

Where 2,080 comes from and when it misleads

40 hours × 52 weeks = 2,080. It is the standard shortcut and it silently assumes every week is paid.

For a salaried employee that holds: holidays and sick leave are paid, so the annual figure is real. For an hourly worker without paid leave, two weeks off is 80 unpaid hours — the effective annual figure is 2,000 hours, not 2,080.

Comparing a salaried offer to an hourly one using 2,080 for both therefore overstates the hourly role. The fair comparison uses the hours you will actually be paid for.

What else changes the comparison

What else changes the comparison
FactorEffect
Paid holidaySalaried usually included; hourly often not
Employer pensionFrequently a percentage of salary — real money
Health coverA large, invisible part of US compensation
Overtime eligibilityOften hourly only
Guaranteed hoursA zero-hours contract has no floor
Self-employment taxContractors pay both halves

For contract work the rule of thumb is to add 25–30% to an employee-equivalent rate before it is comparable, covering unpaid leave, both halves of social contributions, and no employer pension.

The figure most people actually want

Usually not the annual number but the monthly one after tax, because that is what arrives in the account.

Convert to gross annual here, then run it through the paycheck calculator for the deductions.

Converting in the other direction is useful for a different reason: dividing a salary offer by real hours worked, including the unpaid ones, is the honest way to compare two roles with different expectations.

Frequently asked questions

How do I convert hourly to annual?

Multiply by hours per week and by paid weeks per year. The common shortcut of × 2,080 assumes 40 hours over 52 paid weeks, which is right for salaried roles and overstates hourly ones with unpaid leave.

Why is 2,080 wrong for hourly work?

Because it counts holidays and sick days as paid. Two weeks of unpaid leave means 2,000 paid hours, not 2,080 — a difference of several thousand a year at most rates.

How much more should a contractor charge?

Commonly 25–30% above an employee-equivalent rate. That covers unpaid leave, both halves of social contributions, no employer pension and gaps between contracts.

Should I compare offers on salary alone?

No. Employer pension, health cover and guaranteed hours are real money. So are the unpaid hours actually expected — dividing salary by true hours worked is the honest comparison.

How many working weeks are in a year?

52 for pay purposes. After typical holiday and public holidays, most people work about 46–48, which is the figure to use when estimating capacity rather than pay.