How to Calculate Annual Salary from Hourly Pay
Learn the simple hourly-to-salary formula and where overtime, unpaid time, and weekly hours change the estimate.
Open the Hourly to Salary CalculatorThe core formula
Annual salary estimate = hourly rate x hours per week x weeks worked per year.
Use gross pay before taxes and deductions. If you work year-round, 52 weeks is a common starting point. If unpaid time off applies, reduce the effective annual estimate.
When overtime changes the result
A straight hourly-to-salary estimate does not include overtime unless you add it separately.
For covered nonexempt workers under federal rules, overtime after 40 hours in a workweek is generally paid at not less than one and one-half times the regular rate.
Examples
Basic annual salary example
- Hourly rate: $22
- Hours per week: 40
- Weeks per year: 52
- $22 x 40 x 52 = $45,760 per year before taxes.
Unpaid time example
- If the same worker takes 2 unpaid weeks, the effective paid weeks are 50.
- $22 x 40 x 50 = $44,000 effective annual gross pay.
Try it with your numbers
Use the calculator to check the examples against your own pay, hours, PTO, or raise assumptions.
Open the Hourly to Salary Calculator