Hourly to Salary Calculator — Convert Hourly Rate to Annual Salary
Updated October 2026 · 4 min read
Quick start: Open the free Hourly to Salary Calculator — convert any hourly rate to annual salary or reverse it instantly.
Whether you are comparing a contract rate to a full-time offer, evaluating whether a pay rise is fair, or calculating what a new hire will cost annually — converting between hourly and salary numbers is something everyone needs to do. The maths is simple once you know the standard assumptions.
The Standard Formula
Annual salary = Hourly rate × 40 hours × 52 weeks = Hourly rate × 2,080
Hourly rate = Annual salary ÷ 2,080
| Hourly rate | Annual salary (2,080 hrs) | Monthly gross |
|---|---|---|
| $15/hr | $31,200 | $2,600 |
| $25/hr | $52,000 | $4,333 |
| $50/hr | $104,000 | $8,667 |
| $75/hr | $156,000 | $13,000 |
| $100/hr | $208,000 | $17,333 |
Comparing a Contract Rate to a Salary Offer
If you are a contractor considering a salaried role, the headline salary number understates what you gain — and overstates your cut. Employers typically add 20–30% on top of base salary in benefits (health insurance, retirement match, paid leave). To compare fairly:
True hourly value of salary = (Annual salary + Benefits value) ÷ 2,080
Example: $80,000 salary + $20,000 benefits = $100,000 ÷ 2,080 = $48.08/hr equivalent
As a contractor billing $50/hr, you must pay self-employment tax (15.3%), fund your own benefits, and handle your own retirement — making the $48.08 equivalent salary actually competitive, not a pay cut.
The "Bill Rate" vs Take-Home Rate
Freelancers and contractors rarely work 2,080 billable hours per year. Vacations, sick days, client acquisition time, admin and downtime typically reduce billable hours to 1,500–1,800 for most freelancers. Calculate your real effective rate:
Effective annual income = Hourly rate × Actual billable hours
$60/hr × 1,600 hrs = $96,000 actual gross (not $60 × 2,080 = $124,800)
Convert Hourly Rate to Annual Salary
Works in both directions — hourly to salary or salary to hourly rate. Handles part-time hours too.
Open Free Hourly to Salary Calculator →