Orpheus

Hourly Rate to Annual Salary

Convert an hourly rate to yearly, monthly and weekly pay.

Inputs

Holiday and sick leave you are not paid for. Zero if you are salaried or have paid leave.

Annual
52,000.00
Monthly
4,333.33
Weekly
1,000.00
Daily (at 8 hours)
200.00
Paid weeks
52
annual = rate × hours per week × (52 − unpaid weeks)

Gross, before tax and deductions. Contract rates should also carry unpaid leave and self-employment costs.

Every tool runs entirely in your browser. Your files are never uploaded to a server.

Multiply the hourly rate by hours per week, then by the number of paid weeks. At forty hours with no unpaid leave that is rate times 2,080 — so 25 an hour is 52,000 a year before tax.

How to use Hourly to Salary Calculator

  1. Enter your hourly rate. Gross, before deductions.
  2. Set your weekly hours. Contracted hours rather than hours actually worked, unless overtime is paid at the same rate.
  3. Add unpaid weeks. Contractors are typically unpaid for holiday and sickness — five or six weeks is realistic.

About converting an hourly rate to a salary

Converting an hourly rate into an annual figure is easy arithmetic that regularly produces misleading comparisons, because the two numbers are not measuring the same package. A salaried role typically carries paid holiday, paid sickness, employer pension contributions, employer social taxes, equipment, training and notice-period protection. An hourly contract rate usually funds none of those, and the person receiving it also bears the risk of gaps between engagements. That is why the customary guidance is that a contract rate needs to be considerably higher than the hourly equivalent of a salary to leave you in the same position, and why comparing the headline figures alone flatters the contract. The second distortion is hours actually worked. A salary divided by contracted hours gives one rate; divided by the hours the job really takes it gives another, and for roles where fifty or sixty hour weeks are normal the difference is large enough to reverse which of two offers pays better. It is worth doing that division honestly before accepting either. Finally, this figure is gross throughout. Take-home depends on jurisdiction, allowances, pension arrangements and repayment thresholds, none of which generalise.

Frequently asked questions

How many working hours are in a year?
2,080 at forty hours a week across 52 weeks. That figure ignores public holidays and leave, so it represents a salaried year rather than a contractor’s. Deducting six weeks of unpaid leave leaves 1,840.
Why is my contract rate not comparable to a salary?
Because a salary usually includes paid holiday, sick pay, pension contributions, employer taxes and equipment. A contractor funds all of those from the headline rate, which is why the customary rule of thumb is that a contract rate needs to be substantially higher to be equivalent.
How do I convert a salary back to an hourly rate?
Divide by the hours actually worked. At 52,000 for a 40-hour week that is 25 an hour, but if the real week is 50 hours it is 20 — which is why comparing two salaried roles by hours worked often changes the ranking.
Is this before or after tax?
Before. Take-home pay depends on your country, allowances, pension contributions and student loan status, and no single formula covers it. Use this to compare offers on a like-for-like gross basis.

Last updated