Hourly to salary calculator

Multiply the hourly rate by the hours you work per week, then by the weeks you work per year. $20 an hour for 40 hours a week over 52 weeks is 20 × 40 × 52 = $41,600 a year, which is $3,466.67 a month, $800 a week and $160 for an eight-hour day.

Divide the annual salary by the number of paid hours in a year, which is hours per week × weeks per year. A $41,600 salary on a 40-hour week with 52 paid weeks is 41,600 ÷ 2,080 = $20 an hour. The common shortcut of dividing by 2,000 assumes 50 working weeks instead.

Use 52 if you are salaried or receive paid vacation, because you are paid for every week of the year. Use fewer weeks if you are hourly and unpaid time off reduces your income: two unpaid weeks of vacation means 50 paid weeks. The weeks field changes the annual and monthly figures but not the weekly or daily ones.

Before tax. The figures are gross pay and do not deduct income tax, Social Security, health insurance or retirement contributions, nor do they add overtime, bonuses or tips. Use them to compare offers or set a target rate, then estimate take-home pay separately.

Daily pay divides the weekly hours by five and multiplies by the hourly rate, which assumes a standard five-day week. If you work four long days or six short ones, the weekly figure is the one to rely on, and the monthly figure is simply the annual salary divided by 12.