How to use this calculator
Choose whether you are paid hourly or receive a salary. For hourly workers, enter your rate, hours per week, and weeks worked per year. Add any regular overtime hours to see how they boost your annual income.
For salaried workers, enter your annual salary. Both modes let you add paid holidays and PTO days to see the total value of your compensation package. The calculator shows your income broken down into every time period and calculates your effective hourly rate.
Understanding income conversions
Converting between hourly and annual pay requires knowing your hours worked. The standard assumption is 2,080 hours per year (40 hours per week times 52 weeks). However, actual hours may differ based on overtime, unpaid leave, or part time schedules.
Your effective hourly rate is often more revealing than your stated rate or salary. It divides your total annual pay by every hour you actually work, giving you a true picture of what each hour of your time is worth.
Frequently asked questions
How do I convert hourly to annual?
Multiply your hourly rate by hours per week, then by 52. For example, $20/hour at 40 hours/week equals $41,600 per year. Add overtime at 1.5x for any hours beyond 40.
What is 2,080 hours?
2,080 is the standard number of working hours in a year (40 hours per week times 52 weeks). It is the most common conversion factor used when converting between hourly and annual pay.
Is overtime always 1.5 times?
Under the Fair Labor Standards Act (FLSA), non exempt employees must be paid at least 1.5x their regular rate for hours over 40 in a workweek. Some states and contracts may require double time for certain hours.
Should I include PTO in my income?
PTO does not increase your paycheck, but it has real value. If you receive 15 days PTO, that is 3 weeks of paid time off worth thousands of dollars. Include it when comparing total compensation between offers.
Is this gross or net income?
This calculator shows gross (pre tax) income. Your actual take home pay will be 20% to 35% less depending on your tax bracket, state, and deductions.