Hourly to Salary
Turn an hourly rate into weekly, monthly and yearly pay.
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Formula
How the calculation works
An hourly rate is a ratio, so turning it into a salary is a chain of multiplications that cancel units: rate times hours in a week times weeks in a year. At 40 hours and 52 weeks the year is 2,080 hours, so 18 an hour is 37,440 and 25 an hour is 52,000. Nothing compounds here; double the rate and every figure below doubles with it.
The weeks-per-year figure is the lever people leave untouched, and leaving it at 52 quietly overstates the year. Fifty-two assumes you are paid for every week including holidays; an hourly worker who takes two weeks unpaid is closer to 50, which drops the 18-an-hour year to 36,000. The tool refuses more than 168 hours in a week, which catches a mistyped shift.
The derived figures carry their own assumptions. Monthly is the year divided by twelve, so 18 an hour is 3,120 a month, not the 2,880 you get by multiplying the weekly 720 by four, because a month is about 4.33 weeks. The daily figure divides the week by five, which silently assumes a five-day week and is wrong for a four-day rota.
Common mistakes
- Multiplying the weekly pay by four to get a month. At 18 an hour the week is 720, and four of them is 2,880, but the true month is 3,120, because a month runs about 4.33 weeks.
- Leaving the weeks figure at 52 for hourly work that has unpaid holidays or leave, which lifts the annual by a week or more of pay.
- Reading the annual figure as take-home. It is gross, before tax and any deductions, so what reaches the bank is lower.
When to use it
- Use it to put an hourly offer and a salaried one on the same footing, or to see what a rate yields in a month for a budget.
- It is the wrong tool for the reverse question and for anything with overtime: for a salary broken into an hourly rate use the salary-to-hourly calculator, and for extra hours at a premium use the overtime tool.
Worked example
18 an hour at 40 hours a week is 37,440 a year.
Common questions
What if I take unpaid leave?
Lower the weeks figure, to 50 for example, and the year becomes realistic.
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