That job offer looks good on paper — but what does $22 an hour actually mean for your life? Enter your rate and see exactly what you’re earning per year, month, and week, including overtime, tips, and bonuses.

How Your Hourly Rate Translates to an Annual Salary

Most job offers, budgets, and apartment applications think in annual terms. If you’re paid by the hour, that creates a constant mental translation problem — one this calculator does instantly.

The base formula is straightforward: multiply your hourly rate by the number of hours you work per week, then multiply by the number of weeks you work per year. A standard full-time schedule is 40 hours × 52 weeks, which gives you 2,080 working hours a year. At $20/hour, that’s $41,600.

But that number overstates what most people actually earn. If you take two weeks of vacation and observe 11 federal holidays, you’re working closer to 1,877 hours. The same $20/hour becomes $37,540 — a $4,060 difference that matters when you’re comparing offers or planning a budget.

A Real Example, Step by Step

Say you earn $24/hour, work 40 hours a week, take 10 vacation days, and observe 11 holidays.

• Adjusted working days: 260 − 21 = 239 days
• Adjusted working weeks: 239 ÷ 5 = 47.8 weeks
• Annual base pay: $24 × 40 × 47.8 = $45,888

Now add 4 hours of overtime per week at 1.5× pay:

• Overtime rate: $24 × 1.5 = $36/hour
• Overtime income: $36 × 4 × 47.8 = $6,883
• Total gross: $52,771

That’s meaningfully different from the $49,920 you’d calculate with the simple formula. Overtime adds up — and most simple calculators ignore it entirely.

Common Mistakes When Converting Hourly to Annual

Using 52 weeks without adjusting for time off. The standard 2,080-hour figure assumes you work every single week of the year. Factor in vacation and holidays and your real number is lower.

Forgetting that overtime changes your effective rate. If you regularly work more than 40 hours, your real hourly output is worth more than your base rate. The effective hourly rate shown in this calculator accounts for all income sources divided by all hours worked.

Comparing gross to net. A $55,000 annual salary and a $55,000 gross calculation are not the same thing in your bank account. Federal taxes, state taxes, and FICA will reduce your take-home by 20–35% depending on your situation. The estimated take-home shown here uses federal tax brackets only — treat it as a floor, not a promise.

Frequently Asked Questions

How do I convert hourly to yearly salary? Multiply your hourly rate by your weekly hours, then by the number of weeks you work per year. For a standard full-time schedule with no time off: hourly rate × 2,080. For a more accurate figure, subtract vacation days and holidays first.

What is $20 an hour annually? At 40 hours per week with no time off, $20/hour equals $41,600 per year. Adjusted for 10 vacation days and 11 holidays, it comes to approximately $37,540.

How much is $50,000 a year per hour? Divide by 2,080 for the standard estimate: roughly $24.04/hour. If you work fewer hours due to vacation or part-time schedules, your effective hourly rate is higher.

Does this calculator include overtime? Yes. Open the Extra Income section and enter your average overtime hours per week. The calculator applies your selected multiplier (1.5×, 2×, or 2.5×) and adds the result to your annual total.

Should I use gross or take-home pay when comparing job offers? Always start with gross to make an apples-to-apples comparison between offers. Then estimate take-home separately, since deductions vary by state, benefits elections, and filing status.