📈 Hourly to Salary Calculator

Convert your hourly wage to an equivalent annual salary, and see every pay period amount. Includes overtime projections, contractor vs employee comparison, and raise impact calculator.

Hourly Wage Conversion

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Annual Salary Equivalent
$0
Monthly
$0
Biweekly
$0
Weekly
$0
Daily (8h)
$0
Annual with OT
$0
OT Hourly Rate
$0/hr

Contractor vs Employee Analysis

As a contractor/freelancer, you pay both sides of FICA taxes and your own benefits. Find out what hourly rate you need to match an employee's total compensation.

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$
$
Equivalent Contractor Rate Needed
$0/hr
Employee Annual Gross
$0
Self-Employment Tax (add'l 7.65%)
$0
Benefits You Must Buy
$0
Unpaid Weeks Cost
$0
Total Annual Revenue Needed
$0
Billable Hours/Year
0

Raise Impact Calculator

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%
or
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New Hourly Rate
$0
New Annual Salary
$0
Extra Per Paycheck (biweekly)
+$0
Extra Per Year
+$0

How to Convert Hourly to Annual Salary

Annual = Hourly Rate × Hours Per Week × Weeks Per Year
Standard: $25/hr × 40 hrs × 52 weeks = $52,000/year

With Overtime: Annual = (Reg Hrs × Rate + OT Hrs × Rate × 1.5) × 52

The "÷2000" and "÷2080" Quick Methods

  • ÷2000: Multiply hourly × 2000 (assumes 50 weeks × 40 hrs, accounting for ~2 weeks unpaid leave). Quick mental math: $25/hr × 2000 = $50,000.
  • ÷2080: Multiply hourly × 2080 (52 weeks × 40 hrs, full year). Most precise for salaried conversion: $25/hr × 2080 = $52,000.
  • Quick test: Divide annual salary by 2000 to get approximate hourly rate. $60,000 ÷ 2000 = $30/hr.

Contractor Rate Premium ("1099 Markup")

Contractors typically charge 25–50% more than the equivalent employee rate to cover:

  • Self-employment tax: 7.65% extra (employer's share of FICA)
  • No paid time off (2–4 weeks = 4–8% of compensation)
  • Health insurance (can be $4,000–$20,000/year)
  • No 401(k) match, no employer benefits
  • Income volatility and gaps between contracts
What hourly rate equals a $100,000 salary? +
$100,000 ÷ 2,080 hours = $48.08/hour (assuming 40 hrs/week, 52 weeks). Using the ÷2000 method: $100,000 ÷ 2000 = $50/hour. If you're a contractor targeting $100k in take-home equivalent, you'd need to charge roughly $60–$75/hr to cover self-employment taxes, benefits, and unpaid time.
How does paid time off affect hourly vs salary comparison? +
A salaried employee with 3 weeks PTO earns their full salary while working only 49 weeks. An hourly worker without paid vacation earns nothing during unpaid leave. When comparing a $25/hr hourly position with no PTO to a salary with 3 weeks PTO, the salaried equivalent needs to be calculated at 52 weeks: $25 × 40 × 52 = $52,000. But the hourly worker's effective pay for actual worked time is $25 × 40 × 49 = $49,000 — $3,000 less annually.