How to Convert Hourly to Salary (with Take‑Home Pay)
To convert hourly to salary, multiply your hourly wage by hours per week and weeks per year. That gives you gross income. To estimate take‑home pay, subtract federal income tax, state tax, and FICA (Social Security + Medicare).
Quick example
$25/hour × 40 hours × 52 weeks = $52,000 gross per year.
After federal tax, state tax (if any), and FICA, your annual net might be closer to the mid‑$40Ks depending on filing status and state.
Why gross ≠ net
- Federal income tax uses progressive brackets after the standard deduction.
- State tax varies by state (some have none). We use an effective rate you can edit.
- FICA includes 6.2% Social Security (to a wage base) and 1.45% Medicare.
💡 Try it yourself with our Hourly → Salary Converter.
Worked examples
$18/hour, 40 hours/week, 52 weeks: $37,440 gross. Net varies by state; try switching filing status and state rate to compare.
$32/hour, 35 hours/week, 50 weeks: $56,000 gross. Part‑time or reduced weeks can significantly change effective hourly net.
Common pitfalls
- Forgetting unpaid time off (holidays, vacation, sick days).
- Comparing gross to net (always compare net to net).
- Ignoring pre‑tax benefits that reduce taxable income.
Step‑by‑Step Method (with Formulas)
1) Annual Gross = Hourly Rate × Hours/Week × Weeks/Year. If you’re part‑time or take unpaid time off, adjust weeks/year accordingly. Typical full‑time assumptions use 40 hours and 52 weeks, but many employees effectively work 48–50 weeks after vacations and holidays.
2) Monthly Gross = Annual Gross ÷ 12. Bi‑weekly = Annual Gross ÷ 26. Weekly = Annual Gross ÷ 52. These conversions let you compare job offers that pay on different schedules.
3) Estimated Taxes = Federal + State + FICA. We apply the standard deduction and progressive federal brackets, then layer in an effective state rate and FICA (Social Security + Medicare). Your real amount can differ if you have additional deductions, credits, or pre‑tax benefits.
Worked Examples
Case A: $18/hour, 40 hrs/week, 52 weeks
Annual gross = $18 × 40 × 52 = $37,440. With the standard deduction (single filer) and a moderate state rate, your annual take‑home might land around the low‑to‑mid $30Ks, depending on your state. Monthly net would be a fraction of that total divided by 12.
Case B: $32/hour, 35 hrs/week, 50 weeks
Annual gross = $32 × 35 × 50 = $56,000. Fewer hours or fewer working weeks reduce gross but may fit better with family or school schedules. Try toggling the “weeks per year” input to see the effect instantly.
Case C: Overtime Scenario
If you average 5 hours of weekly overtime at 1.5× on a $22 rate, that adds $165/week, or about $8,580/year to gross pay before taxes. Include it in your hours or treat it as a separate calculation so you see the realistic full‑year picture.
Common Pitfalls & How to Avoid Them
- Comparing gross to net: Always compare net to net when deciding between roles.
- Ignoring unpaid time off: Many employees lose 2–4 weeks to holidays and vacation.
- Forgetting pre‑tax deductions: 401(k)/HSA reduce taxable income and raise your net.
- State differences: No‑tax vs high‑tax states can move net by thousands per year.
Ready to run your numbers? Use the Hourly → Salary Converter and experiment with hours, weeks, and state rate.