1. Scope
Converts between hourly rate and annual salary with PTO, holidays, and overtime adjustments. It does not model bonuses, equity, or regional labour-cost differences.
2. Inputs and outputs
Inputs
- hourlyRate number (currency/hr)
- hoursPerWeek number default: 40
- weeksWorkedPerYear number default: 48
Adjust for PTO and holidays.
- overtimeHoursPerWeek number default: 0
- overtimeMultiplier number default: 1.5
Outputs
- annualSalaryEquivalent
hourly × weeklyHours × weeks + OT.
- weeklyGross
hourly × weeklyHours + OT.
Engine source: src/lib/hourly-to-salary-converter/engine.ts
3. Formula / scoring logic
regular_annual = hourly_rate * hours_per_week * weeks_worked
overtime_annual = ot_hours * hourly_rate * ot_multiplier * weeks_worked
annual_salary = regular_annual + overtime_annual4. Assumptions
- Standard workweek is user-entered, not assumed to be 40.
- Weeks-worked defaults to 48 to reflect typical PTO and holidays for US full-time work.
- Overtime follows FLSA 1.5× the regular rate by default; salaried-exempt roles receive no OT.
5. Data sources
6. Known limitations
- Does not compute post-tax take-home; for that, see the Salary / Paycheck Calculator.
- Global use requires adjusting weeks-worked and overtime rules for jurisdiction.
7. Reproducibility
Input
hourlyRate = $50, hours = 40, weeks = 48.
Expected output
annualSalary = $96,000, weeklyGross = $2,000.
8. Change log
- 2026-04-24 methodology page first published.
Worked example
Run live against the same engine this site ships
(/engines/hourly-to-salary-converter.js).
The inputs and outputs below are recomputed on every build and
independently re-verified in CI — they are never hand-authored.
Input
- tool
- hourly_to_salary
- hourly_rate
- 32
- annual_salary
- 72000
- hours_per_week
- 40
- weeks_per_year
- 52
- paid_time_off_days
- 15
- paid_holidays_days
- 10
- paid_sick_days
- 5
- overtime_hours_per_week
- 0
- overtime_multiplier
- 1.5
- annual_benefits_value
- 6000
Output
- annualFromHourly
- 66560
- annualFromHourlyWithBenefits
- 72560
- effectiveHourlyFromSalary
- 39.13
- effectiveHourlyFromSalaryWithBenefits
- 42.39
- paidDaysTotal
- 30
- paidHoursTotal
- 240
- overtimeAnnualGross
- 0
- assumptionsEcho.hourlyRate
- 32
- assumptionsEcho.annualSalary
- 72000
- assumptionsEcho.hoursPerWeek
- 40
- assumptionsEcho.weeksPerYear
- 52
- assumptionsEcho.paidTimeOffDays
- 15
- assumptionsEcho.paidHolidaysDays
- 10
- assumptionsEcho.paidSickDays
- 5
- assumptionsEcho.overtimeHoursPerWeek
- 0
- assumptionsEcho.overtimeMultiplier
- 1.5
- assumptionsEcho.annualBenefitsValue
- 6000
Frequently asked questions
- What does the Hourly to Salary Converter calculate?
- Converts between hourly rate and annual salary with PTO, holidays, and overtime adjustments. It does not model bonuses, equity, or regional labour-cost differences.
- What inputs does the Hourly to Salary Converter need?
- It takes 5 inputs: hourlyRate, hoursPerWeek (default 40), weeksWorkedPerYear (default 48), overtimeHoursPerWeek (default 0), overtimeMultiplier (default 1.5). Outputs returned: annualSalaryEquivalent, weeklyGross.
- What formula does the Hourly to Salary Converter use?
- The exact computation is: regular_annual = hourly_rate * hours_per_week * weeks_worked; overtime_annual = ot_hours * hourly_rate * ot_multiplier * weeks_worked; annual_salary = regular_annual + overtime_annual
- Can I verify the Hourly to Salary Converter with a worked example?
- Yes. With hourlyRate = $50, hours = 40, weeks = 48. the tool returns annualSalary = $96,000, weeklyGross = $2,000.
- Where does the Hourly to Salary Converter get its benchmark data?
- Reference data is sourced from: US Department of Labor — Fair Labor Standards Act overtime rules (as of 2024); US BLS Occupational Employment and Wage Statistics (OEWS) (as of 2024).
- What can the Hourly to Salary Converter not tell me?
- Known limitations: Does not compute post-tax take-home; for that, see the Salary / Paycheck Calculator. Global use requires adjusting weeks-worked and overtime rules for jurisdiction.