How to convert hourly pay to annual salary
Multiply your hourly rate by your regular hours per week and the number of paid weeks per year. Add any estimated overtime pay.
This produces an estimate ofgross income, before taxes and payroll deductions.
Annual gross pay = (hourly wage × regular weekly hours + hourly wage × overtime hours × overtime multiplier) × paid weeks
Example: $25 per hour
At $25 per hour for 40 regular hours per week and 52 paid weeks, estimated annual gross pay is$52,000.
With five additional overtime hours per week at 1.5× the hourly rate, estimated annual gross pay becomes$61,750.
Weekly, biweekly and semimonthly pay explained
Employers may use different pay schedules. Understanding these schedules helps you compare earnings and plan your budget.
Weekly pay
Weekly gross pay is the amount earned during a representative paid working week.
Biweekly pay
Biweekly means once every two weeks, typically producing 26 paychecks in a 52-week year.
Average biweekly pay = Annual gross pay ÷ 26
Semimonthly pay
Semimonthly means twice per month, typically producing 24 paychecks each year.
Average semimonthly pay = Annual gross pay ÷ 24
Monthly pay
Average monthly gross earnings are calculated by dividing estimated annual gross pay by 12.
Example pay breakdown
Suppose you earn $25 per hour, work 40 regular hours per week and receive pay for 52 weeks per year, without overtime.
- Weekly gross: $1,000.00
- Average biweekly: $2,000.00
- Average semimonthly: $2,166.67
- Average monthly: $4,333.33
- Annual gross: $52,000.00
These figures use annual averages. Actual paychecks may differ based on hours worked, unpaid time off, payroll schedules and other factors.
Frequently asked questions
Does this calculate take-home pay?
No. This calculator estimates gross pay before federal and state income taxes, Social Security, Medicare, insurance and retirement deductions.
Is biweekly the same as twice a month?
No. Biweekly pay generally means 26 paychecks per year, while semimonthly pay generally means 24 paychecks per year.
Are overtime rates always 1.5×?
No. Overtime eligibility and rates depend on applicable law, work arrangements and location. The selected multiplier is only a calculation assumption.
What about unpaid time off?
Lower the paid-weeks field to account for weeks without pay. If your weekly hours vary, use a representative average.
How does the job comparison work?
It compares two hourly rates using identical weekly hours and paid weeks.
It does not consider benefits, commuting expenses, job security or other employment conditions.
Educational estimates only. Not financial, tax, payroll or legal advice.