Wage conversion · Pay frequency breakdown · US income planning
Hourly to Salary Calculator
Convert any hourly rate to annual, monthly, bi-weekly, and weekly income. Model 50 or 52-week years, compare job offers on equal terms, and understand what your rate actually means over a full year.
A standard full-time role in the US consists of 2,080 work hours per year (40 hours × 52 weeks).
Wage Projector
Convert your hourly pay into a predictable annual salary.
How it works
What this calculator actually does
Hourly rates and annual salaries describe the same thing in different languages. This calculator translates between them — and breaks the result into every pay frequency you might encounter: annual, monthly, bi-weekly, and weekly.
The standard conversion is simple: hourly rate × 40 hours × 52 weeks = gross annual salary. But that 2,080-hour figure assumes you get paid for every week of the year, including holidays and vacation. If you're a contractor or hourly worker without paid time off, the honest number is closer to 2,000 hours — and that gap is worth knowing before you sign anything.
Who this is for
Job seekers comparing a contract hourly rate to a salaried offer. Freelancers figuring out what to charge to hit an income target. Employees being offered overtime who want to know what it adds up to. Anyone who's been handed a number in one format and needs it in another.
The standard
The 2080-hour rule — and when to ignore it
The US standard for annual salary conversion is 2,080 hours — 40 hours per week across 52 weeks. Lenders, HR departments, and job listings all use this figure. For salaried employees with paid time off, it's accurate: you receive the same paycheck whether it's a holiday or not.
For contractors and hourly workers without PTO, 2,080 is optimistic. The US has 11 federal holidays, and most people take at least some unpaid time off. A more conservative — and budget-safe — baseline is 2,000 hours (50 working weeks). The difference at common rates:
$35/hr
$50/hr
$75/hr
That gap is real money. If you budget fixed expenses — rent, car payments, loan repayments — against the 52-week figure but only bill 50 weeks, you'll be short every year.
Quick reference
Common hourly rates and their annual equivalents
All figures below use the 2,080-hour standard (40 hrs × 52 weeks). Gross only — before tax.
Practical tips
How to actually use this number
Use 50 weeks if you're a contractor without PTO
Eleven federal holidays plus a typical two-week break equals roughly 10–13 unpaid days per year for most contractors. A $50/hr rate at 50 weeks nets $100,000 — not $104,000. That $4,000 gap compounds across a career. Model the conservative number when budgeting fixed expenses like rent or a mortgage.
Gross salary is not what you take home
This calculator shows gross annual income — before federal income tax, state tax, Social Security (6.2%), and Medicare (1.45%). A $72,800 gross salary will typically yield $55,000–$62,000 in take-home pay depending on your state and filing status. Use a paycheck-after-tax calculator to model the real number.
Know your annual equivalent before salary negotiations
If you're offered a $45/hr contract role, knowing it equals $93,600 annually lets you compare it directly to salaried offers with no ambiguity. Hiring managers set budgets in annual figures — meeting them there makes the conversation cleaner and puts you in control.
Factor in total compensation, not just base salary
A $90,000 salary with fully paid health insurance and a 6% 401(k) match often puts more money in your pocket than a $100,000 offer with expensive family coverage deductions and no match. Model the benefits cost before assuming the higher number is better.
Offer comparison
Comparing contract vs. salaried offers
Contract roles typically pay higher hourly rates to offset what employers don't provide: health insurance, retirement contributions, paid leave, and employer payroll taxes. A $50/hr contract rate is not equivalent to a $104,000 salary — the real comparison depends on what benefits the salary includes.
A rough rule of thumb: add 20–30% to a salaried offer to account for the benefits you'd need to self-fund on a contract. A $90,000 salary with full health coverage and a 6% 401(k) match is often worth $105,000–$115,000 in total compensation. The hourly rate needs to clear that bar before the contract is the better financial deal.
Watch out for contract-to-hire conversion
Agencies sometimes offer a strong hourly rate for a contract period, then propose a significantly lower annual salary upon conversion. Before accepting any contract-to-hire role, get the minimum conversion salary in writing. If the employer won't commit, factor that uncertainty into your rate.
Limitations
What this calculator doesn't show you
- ✕Net take-home pay. This tool calculates gross income only. Federal income tax, state tax, Social Security (6.2%), and Medicare (1.45%) all reduce your actual paycheck. Use a paycheck-after-tax calculator for net figures.
- ✕Benefits valuation. Health insurance, employer 401(k) matching, stock options, and paid leave all have real dollar value. This calculator doesn't model them — compare total compensation, not just base salary.
- ✕Overtime rules. For non-exempt hourly employees, hours beyond 40 per week are paid at 1.5× the base rate under federal law. This calculator uses a flat rate — if you regularly work overtime, your actual annual income will be higher.
- ✕Self-employment tax. Freelancers and 1099 contractors pay both the employee and employer portions of Social Security and Medicare (15.3% combined). This significantly changes the net-pay math compared to a W-2 employee at the same gross rate.
FAQ
Questions people actually search for
What is the 2080 rule and when should I use it?›
The 2080 rule (40 hours × 52 weeks) is the standard US baseline for hourly-to-annual conversion. Use it when you're a full-time salaried employee with paid holidays and vacation — you're paid regardless. If you're hourly or a contractor who only earns when working, use 2,000 hours (50 weeks) for a more honest budget.
Should I calculate salary based on 50 or 52 weeks?›
Salaried employees with PTO: 52 weeks. Hourly contractors who don't get paid for holidays or vacation: 50 weeks. The two-week difference sounds minor, but at $50/hr it's $4,000 — real money when planning rent, car payments, or savings goals.
How much is $40 an hour annually?›
$40/hr × 40 hours × 52 weeks = $83,200 gross per year. At 50 working weeks (contractor model), that's $80,000. After federal and state taxes, expect roughly $60,000–$68,000 take-home depending on your location and deductions.
What's the difference between gross and net salary?›
Gross salary is what this calculator shows — your income before any deductions. Net salary is what lands in your bank account after federal income tax, state tax, Social Security, Medicare, and any pre-tax deductions like a 401(k) or health insurance premiums. For most people, net is 70–80% of gross.
I'm moving from a contract to a salaried role — what should I watch for?›
Three things: First, your effective hourly rate drops because salaried employees often work beyond 40 hours without overtime. Second, your benefits (health insurance, 401k match, PTO) add real dollar value — quantify them before comparing offers. Third, confirm the conversion salary in writing before leaving your contract, not after.
Is my wage data private when I use this tool?›
Yes. Everything runs in your browser. No hourly rate or income figure is sent to any server, stored, or logged.