Hourly to Annual Salary Calculator

Converting Hourly Rate to Annual Salary

The standard full-time work year is 40 hours/week × 52 weeks = 2,080 hours.

Annual Salary = Hourly Rate × Hours per Week × Weeks Paid per Year

Paid time off does not reduce your pay. Unpaid time off does.

This is the part almost every hourly-to-salary calculator gets backwards, including an earlier version of this one. If your employer gives you 10 vacation days and 10 paid holidays, you are still paid for all 52 weeks. Those 20 days do not come out of your annual total. What changes is the other direction: you earn the same money for 20 fewer days of work, so your effective rate per hour actually worked goes up.

At $25/hour and 40 hours a week:

• Annual pay: $25 × 40 × 52 = $52,000, with or without the paid days off
• Hours actually worked with 20 paid days off: 2,080 − 160 = 1,920 hours
• Effective rate: $52,000 ÷ 1,920 = $27.08/hour

That $2.08 gap is what paid leave is worth to you, and it is the number to quote when comparing an offer with generous leave against one paying a higher headline rate.

Unpaid days work the way the old formula assumed. Take 10 unpaid days and you lose 80 hours of pay: $52,000 − $2,000 = $50,000. Enter those separately below.

Pay Frequency Breakdown

Note that “biweekly” means every two weeks, which is 26 paychecks a year and not the same as semi-monthly. Semi-monthly is 24 paychecks, and the two differ by about 8% per cheque on the same salary. Payroll departments confuse these constantly.

Common Annual Salary Reference

Note: these are gross (pre-tax) figures. Actual take-home pay depends on your tax bracket, deductions, and benefits.