Hourly to Salary Calculator

The quick math for hourly-to-annual is: hourly × 2,080 = annual salary. Why 2,080? Forty hours per week × 52 weeks. So $35/hr × 2,080 = $72,800/yr. This is a fine first pass.

The shortcut breaks in two cases. (1) You don't work 52 weeks — most hourly workers have 1-2 unpaid weeks off. Use 2,000 hours ($35 × 2,000 = $70,000) for a realistic baseline. (2) You're not working 40 hours — part-time at 25 hours/week is only 1,300 hours/year, turning $35/hr into $45,500 annualized, not $72,800.

This calculator lets you set both hours/week and weeks/year independently. Plug in the real numbers for the real answer.

Non-exempt hourly workers are entitled to 1.5x for hours over 40 per week under federal law (some states, including California, require 1.5x after 8 hours in a day, 2x after 12). Overtime meaningfully changes the annualized figure.

Example. A nurse making $45/hr regularly works 48 hours/week (40 regular + 8 OT at $67.50/hr). Regular annualized: $45 × 40 × 52 = $93,600. Overtime adds: $67.50 × 8 × 52 = $28,080. Total: $121,680. The headline rate is $45/hr; the effective rate after OT is $58.50/hr.

If you're comparing an hourly role with predictable OT to a salaried exempt role, the OT premium is part of the real comparison. Use the Overtime Pay Calculator for precise weekly numbers.

In healthcare, skilled trades, and 24/7 operations, the base hourly rate often has multiple premium tiers layered on top: evening differential ($2-5/hr), night differential ($5-10/hr), weekend premium (+10-20%), holiday pay (2x), call-back pay.

A 3×12 nursing schedule at $48/hr base with night differential of $6/hr and weekend premium of $3/hr can effectively be $55-60/hr across the schedule — annualizing well over six figures at 36 hours per week. The headline hourly rate dramatically understates total pay for these roles.

Ask hiring managers: "What's my base rate, and what differentials apply to my typical schedule?" Get both numbers on the offer letter.

A $40/hr salaried role at 40 hours annualizes to $83,200 and typically includes health insurance ($10-15k employer value), 401(k) match ($2-4k), 15-20 days PTO ($6-8k value), and paid holidays ($2-4k). Total value: $105-115k.

A $50/hr contract role annualizes to $104,000 but often includes no benefits, no PTO, no holiday pay. Net value after self-paid health insurance and unpaid time off: $90-95k.

The $10/hr-higher contract role is worth less than the salaried one. This is why hourly-to-annual conversion by itself is incomplete — pair it with a benefits comparison. Use the Salary vs Hourly Comparison for a full apples-to-apples evaluation.

Lenders calculate your annualized income for mortgage, auto loan, and credit applications. They use the same hourly × hours × weeks formula but often require a 2-year history of consistent hours to count overtime.

If you work variable hours, lenders typically use your lowest-year annualized income from the last 2 years as the baseline for qualification. A year with 35 hours/week counts less for mortgage purposes than your 45-hour year.

When applying for credit, have your hours-per-week history, W-2s, and pay stubs ready. Overtime income can count if you can demonstrate a pattern (usually 2+ years); one-time OT spikes typically don't.

For budgeting, income planning, and any decision that depends on stable cash flow (rent, mortgage, kids' school costs), annualize conservatively: use your realistic hours/week (not peak), assume 48-50 weeks/year (not 52), and exclude overtime from the baseline.

For comparing job offers, annualize at the midpoint: standard hours (40), 50 weeks worked, base rate only. Add OT, shift differentials, and premium pay as separate line items so you can see how robust the comparison is to variations.

For retirement and investment planning, annualize at your long-run sustainable rate. Retirement contributions track to your stable income, not your peak-hours year.

This is not financial, tax, or HR advice. Annualized income from hourly rates depends on actual hours worked, overtime eligibility, shift differentials, and employer policies. Tax treatment of hourly income varies by state and employer classification. For binding numbers in a mortgage application, legal dispute, or tax filing, use official pay records and consult a professional.