How to Convert Hourly Wage to Yearly Salary (and Vice Versa)

Guides · Calculator · Updated 2026

You’ve seen job offers: one says $20 per hour, another says $42,000 per year. Which is worth more? The classic shortcut — hourly wage × 40 hours × 52 weeks — gives a ballpark annual figure, but it assumes you’re working every single weekday of the year with no unpaid time off. Real take‑home pay depends on actual hours worked, weeks off, and overtime. In this article we unpack the formula, show a worked example, and demonstrate a tool that converts in both directions with full flexibility over hours and weeks.

The basic conversion formula

For a standard full‑time job:

Yearly salary = Hourly wage × Hours per week × Weeks per year
Hourly wage = Yearly salary ÷ (Hours per week × Weeks per year)

The default multiplier is 40 hours × 52 weeks = 2,080 hours. So $20/hr × 2,080 = $41,600 per year. To reverse: $41,600 ÷ 2,080 = $20/hr.

Step‑by‑step: convert hourly ↔ salary

Open the Hourly to Salary Calculator tool.
Choose the direction: Hourly → Salary or Salary → Hourly from the dropdown.
Enter the amount, hours per week (default 40), weeks per year (default 52), and a currency symbol (default $).
Click Calculate. The result card shows hourly, daily (8h), weekly, monthly, and yearly equivalents — all filled whichever direction you chose.
Adjust the hours‑per‑week or weeks‑per‑year sliders to reflect part‑time schedules, seasonal work, or generous vacation policies. The numbers update instantly.

💡 Tip: When comparing offers, ask about paid time off (PTO). A $40,000 salary with 4 weeks PTO is effectively more per worked hour than a $42,000 job with only 2 weeks off. Our calculator lets you adjust the “weeks per year” to account for planned unpaid leave.

Worked example: $20/hr, 40h/week, 52 weeks → $41,600/yr

20 × 40 = $800 per week. 800 × 52 = $41,600 per year. Monthly: 41,600 ÷ 12 = $3,466.67. Daily (8h): 20 × 8 = $160. If you take 2 weeks unpaid, change weeks to 50 → 20 × 40 × 50 = $40,000. This simple tweak shows why understanding your real working schedule is as important as the hourly rate itself.

Frequently Asked Questions

Does this calculation include overtime?

No, it assumes a fixed hourly rate for all hours. Overtime is typically 1.5x the base rate and must be added separately. The tool gives the baseline; you can multiply additional overtime hours by 1.5 and add them.

What if I work fewer than 40 hours a week?

Simply change the “hours per week” field. The calculator will adjust all the outputs (daily, weekly, monthly, yearly) accordingly.

Can I use this for contract or freelance work?

Absolutely. Enter your project’s estimated hours per week and the number of billable weeks. It’s a great way to compare a freelance project to a permanent role.

What about taxes and deductions?

This is gross pay conversion. For net take‑home, use our In‑Hand Salary Calculator (India‑specific) or a local payroll calculator for your country.

Is it free and private?

Yes — the tool runs entirely in your browser, free, with no sign‑up and nothing uploaded to a server.

Try the Hourly to Salary Calculator