Convert an hourly rate to an annual salary or back again. Most converters bury the hours assumption. This one shows it, and lets you change it. Every number on this page is calculated in your browser and never leaves your device.
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Conversions get redone every time a schedule or an hours assumption changes, and the old one is rarely written down. The HRAnalyst™ Workbook is a printable tracker for every calculator on this site, with the formula, the recommended cadence and space for four quarters. Join the list and we will send it, along with new calculators and workforce analytics as they publish.
Formula used
Hours per Year = Hours per Week × Weeks per Year
Base Annual = Hourly Rate × Hours per Year
Overtime Annual = Overtime Hours per Week × Weeks Worked × Hourly Rate × Overtime Multiplier
Total Annual = Base Annual + Overtime Annual
Hourly Rate = Annual Salary ÷ Hours per Year
Weeks worked is weeks per year minus any unpaid weeks, and unpaid weeks reduce base pay and overtime pay both. The 2080 hour figure is simply 40 multiplied by 52. It is the arithmetic this page starts from, not a claim about your schedule, which is why hours per week, weeks per year and hours per year are all yours to change.
2080 hours is forty hours a week for fifty two weeks, and it assumes every one of those weeks is paid. If someone takes unpaid time, or works a thirty five hour week, the real figure is different and so is the rate.
Converting an hourly role to salary changes what overtime means. A salaried employee working fifty hours has a lower effective hourly rate than the conversion suggests, because the salary does not move with the hours.
Whether a role can be paid a salary without overtime is an exempt status determination under the Fair Labor Standards Act and applicable state law. It depends on duties and salary threshold, not on the arithmetic here. This calculator converts a rate. It does not determine exempt status, and you should confirm that with counsel.
2080 is forty hours across fifty two paid weeks and nothing more. A thirty five hour week, a shutdown period or unpaid leave all move the real figure, and the converted salary moves with it. Set the hours before you read the result.
If an hourly employee regularly worked overtime, their real annual pay included it. Converting the base rate alone produces a salary that looks equivalent and is not, and the person will notice in the first month. Enter the overtime hours and compare the total.
An hourly rate and an annual salary only become comparable once you say how many hours sit behind the salary. Two figures can look identical and pay very differently. State the hours assumption every time you quote a converted number.
A Pay Converter, for moving a rate between weekly, biweekly, semimonthly and monthly pay periods, is coming soon.
The calculators and content on HRAnalyst are provided for informational purposes only and do not constitute legal, tax, or accounting advice. Compensation and compliance obligations vary by jurisdiction. Consult qualified counsel before acting on any result.
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