Hourly ↔ Salary & Overtime Pay Calculator

Whether you're comparing job offers, budgeting for the year, or calculating overtime earnings, understanding how to convert between hourly wages and annual salary is essential. This calculator helps you instantly convert between hourly, weekly, monthly, and annual pay—plus calculate overtime and double-time earnings.

Many workers wonder "$20 an hour is how much a year?" or need to figure out their effective hourly rate when overtime is involved. Our tool handles all these conversions with customizable work hours, weeks per year, and overtime multipliers to match your specific situation.

For employers, HR professionals, and payroll managers, this calculator simplifies compensation planning by showing how base pay, overtime hours, and double-time combine into total annual compensation. Understanding these calculations ensures compliance with the Fair Labor Standards Act (FLSA) and state overtime laws.

Converting between hourly and salary pay requires understanding a few key variables:

Hours Per Week

The standard full-time work week in the United States is 40 hours. This is the threshold where overtime typically begins for non-exempt employees. Part-time workers might use 20-30 hours, while some industries expect 45-50+ hours regularly.

Weeks Per Year

A calendar year has 52 weeks. However, if you take unpaid vacation, sick days, or leave, your actual working weeks may be 48-50. Salaried employees typically receive paid time off, so they often use 52 weeks. Hourly workers without paid leave should adjust this number to reflect their actual working weeks.

Overtime Pay

Under federal law, non-exempt employees must receive overtime pay at 1.5× their regular rate(time and a half) for hours worked beyond 40 in a workweek. Some states like California have stricter rules, requiring daily overtime for hours over 8 per day.

Double-Time Pay

Double-time (2× regular rate) is not required by federal law but is common in union contracts, for holiday work, or after extended overtime hours. California requires double-time after 12 hours in a day or for work on the 7th consecutive day in a workweek.

Step 1: Select Your Pay Type
Choose whether you're starting with an hourly rate, weekly pay, monthly salary, or annual salary. The calculator will convert to all other formats automatically.

Step 2: Enter Your Base Pay Amount
Input your current pay rate. For example, if you earn $25 per hour, select "Hourly" and enter 25. If you know your annual salary is $60,000, select "Annual" and enter 60000.

Step 3: Adjust Hours and Weeks
The defaults are 40 hours per week and 52 weeks per year (full-time, year-round). Adjust these if you work part-time, take unpaid leave, or have a different standard work week.

Step 4: Include Overtime (Optional)
Toggle on "Include Overtime" to add overtime and double-time calculations. Enter your regular hourly rate, weekly overtime hours, and overtime multiplier (default 1.5×). Add double-time hours if applicable.

Step 5: Review Your Results
See your pay converted to hourly, weekly, monthly, and annual amounts. If overtime is included, you'll see a breakdown of regular pay, overtime pay, double-time pay, total compensation, and your effective hourly rate (total pay ÷ total hours).

Basic Conversions

• Hourly to Annual: Hourly Rate × Hours/Week × Weeks/Year
• Annual to Hourly: Annual Salary ÷ (Hours/Week × Weeks/Year)
• Weekly to Annual: Weekly Pay × Weeks/Year
• Monthly to Annual: Monthly Pay × 12
• Annual to Monthly: Annual Salary ÷ 12
• Annual to Weekly: Annual Salary ÷ Weeks/Year

Overtime Calculations

• Weekly Overtime Pay: Overtime Hours × Hourly Rate × Overtime Multiplier (1.5×)
• Weekly Double-Time Pay: Double-Time Hours × Hourly Rate × 2.0
• Annual Overtime: Weekly Overtime Pay × Weeks/Year
• Total Annual Compensation: Regular Pay + Overtime Pay + Double-Time Pay

Effective Hourly Rate

Your effective hourly rate shows what you truly earn per hour when overtime is included:

Effective Rate = Total Annual Compensation ÷ Total Annual Hours Worked

This rate is higher than your base hourly rate when you work overtime, because those extra hours are paid at premium rates.

1. Job Offer Comparison

You receive two offers: one at $28/hour and another at $55,000/year salary. Using this calculator, you find $28/hour equals $58,240/year (40 hours × 52 weeks). The hourly job pays more—but consider benefits, overtime potential, and job security before deciding.

2. Overtime Earnings Planning

A warehouse worker earns $22/hour and works 10 hours of overtime weekly at 1.5× pay. Their regular annual pay is $45,760, but with overtime ($17,160/year), total compensation jumps to $62,920—a 37% increase.

3. Part-Time Income Estimation

A college student works 20 hours/week at $15/hour during the school year (36 weeks). Their annual income from this job is $15 × 20 × 36 = $10,800—useful for financial aid calculations and budgeting.

4. Freelancer Rate Setting

A freelancer wants to earn the equivalent of a $75,000 salary. Working 35 billable hours/week for 48 weeks, they need to charge $75,000 ÷ (35 × 48) = $44.64/hour minimum—before accounting for self-employment taxes and benefits costs.

5. California Daily Overtime

A California employee works four 10-hour days weekly. Under California law, 2 hours each day are overtime (1.5×). At $30/hour, their weekly pay is: 32 regular hours ($960) + 8 overtime hours ($360) = $1,320, not the $1,200 it would be without daily overtime rules.

6. Budget Planning

A family needs to know monthly income for mortgage qualification. Dad earns $65,000/year ($5,417/month) and Mom earns $24/hour × 30 hours × 52 weeks = $37,440/year ($3,120/month). Combined monthly income: $8,537.

7. HR Payroll Verification

An HR manager needs to verify a new hire's compensation. Offer letter states $72,000/year for a 40-hour week. Calculator confirms hourly equivalent is $34.62/hour, and biweekly paycheck should be $2,769.23 gross before taxes.

• ❌ Using 52 weeks when you take unpaid time off

  If you're hourly without paid vacation, using 52 weeks overestimates your annual income. Subtract unpaid vacation, sick days, and holidays to get accurate figures.

• ❌ Forgetting overtime is calculated on regular rate, not total compensation

  Overtime pay is based on your regular hourly rate, not including bonuses, commissions, or other irregular payments (though some must be included in certain circumstances).

• ❌ Assuming all employees qualify for overtime

  "Exempt" employees (certain salaried professionals, executives, administrators) don't receive overtime pay. Know your classification before expecting time-and-a-half.

• ❌ Ignoring state overtime laws

  States like California, Colorado, and Alaska have daily overtime rules that differ from federal weekly overtime. Always check your state's specific requirements.

• ❌ Comparing gross salary to hourly without considering benefits

  A $50,000 salary with health insurance, 401(k) match, and paid vacation may be worth more than $28/hour without benefits. Factor in the total compensation package.

• ❌ Not accounting for taxes in take-home pay

  This calculator shows gross pay. Your actual take-home is 20-40% less after federal, state, and FICA taxes. Use our Salary Take-Home Calculator for net pay estimates.

• 💡 Calculate your "true" hourly rate for salary jobs

  If you're salaried but work 50+ hours weekly, divide your salary by actual hours worked. A $70,000 salary at 50 hours/week is effectively $26.92/hour, not $33.65/hour.

• 💡 Use effective hourly rate to evaluate overtime decisions

  If overtime would push your effective rate below what you value your time at, you might negotiate for comp time, a raise, or decline optional overtime.

• 💡 Factor in commute and preparation time

  Your "real" hourly rate should include unpaid time spent commuting, preparing, and recovering from work. A $30/hour job with a 2-hour daily commute is effectively lower.

• 💡 Negotiate using annual figures, not hourly

  Employers often think in annual terms. A $2/hour raise sounds small but equals $4,160/year. Present it as "a $4,000 annual increase" for bigger psychological impact.

• 💡 Track overtime patterns for budget accuracy

  If overtime varies seasonally (retail holiday rush, tax season), average your overtime hours over 12 months rather than using peak-period numbers for annual projections.

• 💡 Consider the overtime threshold for financial planning

  Working exactly 40 hours gives you the lowest effective tax rate on your base pay. Overtime income is taxed at your marginal rate, so plan accordingly.