Wage to Salary Calculator — Hourly Rate to Annual Salary
Convert any hourly wage to its equivalent annual salary. Account for overtime hours and premium rates, subtract paid leave days, add employer benefit values and apply an effective tax rate to estimate net take-home pay.
hours
hours
Overtime premium rate
weeks
days
per year
%
Total gross pay per year from regular + overtime hours
- 1
Weekly regular pay
20 × 40 hrs = 800 - 2
Annual gross salary
800 × 52 wks = 41,600
How does this calculator work?
Annual gross = hourly × (regular hrs + OT rate × OT hrs) × effective weeks. Deduct paid-leave weeks, add benefits for total comp, apply an effective tax rate for net pay. Standard US rate: 1.5× overtime above 40 h/week. Use total comp (not just base pay) when comparing jobs.
Formula
How this is calculated
The core conversion is simple: annual salary = hourly rate × total annual hours. The complexity comes from getting the hours right. This calculator lets you specify regular hours per week, separate overtime hours with a configurable premium multiplier (1.0×, 1.5×, 2.0× or 2.5×), paid leave days (which reduce effective working weeks), and weeks worked per year.
In the US, the Fair Labor Standards Act (FLSA) requires non-exempt employees to be paid at 1.5× for hours over 40 per week. In Canada, overtime thresholds vary by province (typically 44–48 hours). In the UK and EU, overtime pay is not mandated by law beyond minimum wage requirements, so many salaried employees receive no overtime premium. Select the rate that matches your jurisdiction or contract.
The "total compensation" figure adds employer-provided benefits (health insurance, pension contributions, stock options, etc.) to gross pay. This is relevant when comparing a salaried role (with benefits) to a self-employed/contractor rate (with no benefits). The net pay estimate uses a flat effective tax rate — it does not model progressive brackets, social security or local taxes; use it for rough budgeting only.
Frequently asked questions
At 40 hours/week × 52 weeks = 2,080 hours/year: 20 × 2,080 = $41,600 gross. If you take 10 days of paid leave (2 weeks), effective weeks = 50: 20 × 40 × 50 = $40,000. This calculator handles both scenarios automatically.
Yes, especially when comparing a job offer to self-employment or contracting. Employer health insurance, pension matching and paid leave can add 20–30% to the value of a salary package. As a contractor you typically fund these yourself, so your equivalent hourly rate needs to be proportionally higher.
Each overtime hour at 1.5× is worth 50% more than a regular hour. Working 5 overtime hours per week at $20/hr and 1.5× adds $150/week: over 50 weeks that is $7,500 extra, increasing a $41,600 base to $49,100 — an 18% uplift. Use this calculator to model exactly how overtime affects your annual total.
Also known as
TG we-Calculate Editorial Team. (2026). Wage to Salary Calculator — Hourly Rate to Annual Salary [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/wage-to-salary-calculator
TG we-Calculate Editorial Team. "Wage to Salary Calculator — Hourly Rate to Annual Salary." TG we-Calculate. 2026. https://we-calculate.com/calculator/wage-to-salary-calculator.
TG we-Calculate Editorial Team, "Wage to Salary Calculator — Hourly Rate to Annual Salary," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/wage-to-salary-calculator
@misc{wecalculate_wage_to_salary_calculator, title = {Wage to Salary Calculator — Hourly Rate to Annual Salary}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/wage-to-salary-calculator}}, year = {2026}, note = {TG we-Calculate} }
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