How to convert hourly pay to an annual salary

How to · Updated 2026-11-10

Multiply your hourly rate by hours a week, then by the weeks you are paid in a year. A worked example with unpaid leave and overtime, plus quick checks.

To turn an hourly wage into a yearly salary, multiply the hourly rate by your hours each week, then by the number of weeks you are paid each year. The salary converter does this for you and lists the matching daily, weekly, two-weekly and monthly amounts in one table, all before tax.

What you need

• Your hourly rate, from the job advert, contract or payslip. If you only know a weekly, monthly or yearly figure, the converter can start from that instead.
• Your usual hours a week. Use contracted hours, not a guess at a busy week.
• Working days a week, so the daily figure makes sense.
• Paid weeks a year. A full year is 52. Paid holidays still count as paid weeks. Only drop below 52 for time off that is not paid.
• Overtime, if you get it regularly: the extra hours a week and the rate, such as time and a half.

Step by step

The core formula is short:

Yearly pay = hourly rate × hours a week × paid weeks a year

From the yearly figure, the other periods follow:

• Weekly = hourly rate × hours a week
• Two weeks (biweekly) = weekly × 2
• Monthly = yearly ÷ 12 (months have different numbers of days, so an even twelfth is the usual way to compare)
• Daily = weekly ÷ working days a week

Overtime is worked out separately and added on:

Overtime a year = hourly rate × overtime multiple × overtime hours a week × paid weeks

With the converter:

1. Pick a currency, then set I know my to “hourly pay”.
2. Type your rate in Amount.
3. Fill in Hours a week, Working days a week and Paid weeks a year.
4. If you work overtime, type the hours in Overtime hours a week and the multiple in Overtime pays (1.5 for time and a half, 2 for double time).
5. Read the cards for hourly, monthly and yearly pay, plus yearly with overtime. The table below them lists every period with and without overtime.

To go the other way, from a salary to an hourly rate, choose “yearly pay” (or “monthly pay”) in I know my and type the salary. The same table fills in.

A worked example

Jordan is offered 22.50 an hour for 37.5 hours a week, over 5 days. Two weeks of the year are unpaid leave, so there are 50 paid weeks. Jordan also expects about 4 hours of overtime each week at time and a half.

Regular pay:

• Weekly: 22.50 × 37.5 = 843.75
• Daily: 843.75 ÷ 5 = 168.75
• Every two weeks: 843.75 × 2 = 1,687.50
• Yearly: 843.75 × 50 = 42,187.50
• Monthly: 42,187.50 ÷ 12 = about 3,515.63

Overtime:

• Overtime rate: 22.50 × 1.5 = 33.75 an hour
• Each week: 33.75 × 4 = 135.00
• Each year: 135.00 × 50 = 6,750

Yearly pay with overtime: 42,187.50 + 6,750 = 48,937.50, before tax.

Notice what the two unpaid weeks cost. With 52 paid weeks, the same job would pay 843.75 × 52 = 43,875 a year, so the unpaid leave takes off 1,687.50.

Check your answer

• The 2,000 shortcut. A full-time year of 40 hours × 52 weeks is 2,080 hours, close to 2,000, so doubling the hourly rate and adding three zeros gives a rough yearly figure. For 22.50, that is about 45,000. Jordan’s 42,187.50 is lower because of the shorter week and unpaid leave, which makes sense.
• Monthly is not weekly × 4. A month is about 4.33 weeks. 843.75 × 4 = 3,375 would undercount; 42,187.50 ÷ 12 = 3,515.63 is the fair figure.
• Biweekly against semi-monthly. Paid every two weeks means 26 pays a year; paid twice a month means 24. They are not the same amount, so check which one your employer uses.
• Overtime stays separate. If the yearly figure with overtime is less than without, the overtime hours or multiple has a slip.

Questions people ask

Is the result what I take home? No. It is gross pay, before income tax, social security or pension deductions. Take-home pay depends on where you live and changes with each year’s tax rules, so check the official source or a payslip calculator for your country, then plan with the budget planner.

How do I compare a pay rise in percent? Turn both offers into the same period first, then use the % change tab in the percentage calculator. For example, going from 42,187.50 to 45,000 a year is a 6.67% rise.

Does every job pay overtime at time and a half? No. Overtime rules depend on the country, the type of job and the contract, and some salaried roles get none. Read your contract and check the official rules where you work. This article is general education only.