About this Hourly → Salary Calculator
This calculator is built to translate an hourly rate into a realistic annual salary by reflecting how people are actually paid.
Instead of the oversimplified “hourly × 2,080” approach, it accounts for unpaid breaks, paid time off, public holidays, overtime rules, shift differentials, tips, recurring or one‑off bonuses, and a simple flat tax estimate.
You can also add employer‑paid benefits to see total compensation (which is helpful when comparing job offers).
Results are displayed across multiple pay cadences—yearly, quarterly, monthly, semi‑monthly, biweekly, weekly, daily, per‑shift, and effective hourly—so you can match how payroll is processed where you live.
Formulas used (plain‑English)
The calculator separates base hours from overtime hours and then layers on extras. First, it removes unpaid breaks from your scheduled hours to get paid hours.
If you enable overtime, any paid hours above your chosen threshold count as overtime and are paid at your multiplier (for example, 1.5×).
Shift differentials add a percentage to certain hours, while tips and bonuses are summed over the year.
Unpaid leave reduces base pay proportionally. A simple pre‑tax deduction is applied, then a flat tax rate estimates take‑home pay.
Paid PTO and public holidays don’t cut pay—they reduce the hours you must work, which raises your effective hourly (gross divided by worked hours).
- Paid hours/week = Hours/week − (Unpaid break minutes × Shifts ÷ 60)
- Overtime hours/week = max(0, Paid hours/week − OT threshold)
- Base hours/week = Paid hours/week − Overtime hours/week
- Gross annual = Hourly × Base hours/week × Weeks/year + Hourly × OT multiplier × OT hours/week × Weeks/year + Tips/week × Weeks/year + Bonus/month × 12 + Bonus/year + (optional 13th‑month) + Shift differential
- Shift differential = Hourly × (Differential % ÷ 100) × Differential hours/week × Weeks/year
- Pre‑tax deductions = Gross × (Pre‑tax %)
- Taxes = (Gross − Pre‑tax) × (Tax %)
- Net annual = Gross − Taxes
- Worked hours/year = (Hours/week × Weeks/year) − Unpaid breaks/year − Paid PTO hours − Paid holiday hours − Unpaid leave hours
- Effective hourly = Gross annual ÷ Worked hours/year
Worked examples (no overtime, 40 hrs/week, 52 weeks)
For quick orientation, 40 hours × 52 weeks equals 2,080 paid hours. The table below shows common hourly rates converted using the basic method (before tips, bonuses, or taxes).
Your own results will vary once you add PTO, breaks, and extras.
| Hourly rate |
Yearly |
Monthly |
Biweekly |
Weekly |
| $15 | $31,200.00 | $2,600.00 | $1,200.00 | $600.00 |
| $20 | $41,600.00 | $3,466.67 | $1,600.00 | $800.00 |
| $25 | $52,000.00 | $4,333.33 | $2,000.00 | $1,000.00 |
| $30 | $62,400.00 | $5,200.00 | $2,400.00 | $1,200.00 |
| $40 | $83,200.00 | $6,933.33 | $3,200.00 | $1,600.00 |
Component reference
| Component |
What it captures |
Where to set it |
| Unpaid breaks |
Time off the clock that lowers paid hours. |
Breaks, PTO & holidays → “Unpaid break minutes / shift”. |
| PTO & holidays (paid) |
Same pay for fewer hours, raising effective hourly. |
Breaks, PTO & holidays section. |
| Overtime |
Hours beyond the threshold paid at a multiplier. |
Overtime & differentials (enable toggle, set threshold & multiplier). |
| Tips & bonuses |
Gratuities and incentives included in gross pay. |
Tips, bonuses & benefits section. |
| Benefits |
Employer‑paid value added to total compensation. |
Tips, bonuses & benefits → “Employer‑paid benefits / year”. |
| Taxes & deductions |
Flat estimate for take‑home; adjust to your situation. |
Taxes & deductions section. |
Why “effective hourly” matters
Two jobs can offer the same annual pay but very different schedules. When PTO is paid and breaks are on the clock, you work fewer hours for the same money—your effective hourly rises.
Unpaid breaks and unpaid leave do the opposite. That’s why this calculator highlights effective hourly next to gross and net numbers: it helps you compare offers on a truly like‑for‑like basis.
Educational use only—not payroll or tax advice. Verify regional overtime and tax rules with official sources or a professional.