Why the same hourly rate can mean different annual pay
Two people earning the same hourly wage can end up with noticeably different yearly pay once actual hours and weeks worked are factored in. Comparing job offers, especially when one is hourly and the other salaried, only works once both are converted to the same basis — which is what this calculator is for.
A worked example
At $25 an hour, 40 hours a week, for 50 paid weeks a year, annual pay comes to $50,000 — but drop to 48 paid weeks (four unpaid weeks off) and the same hourly rate only nets $48,000. That gap is easy to miss when comparing offers by hourly rate alone.
Frequently asked questions
Why isn't this just hourly rate times 2,080 hours?
The common '2,080 hours a year' shortcut assumes exactly 40 hours a week for all 52 weeks, with no unpaid time off. Few people actually work that pattern, so this calculator lets you set your real hours per week and paid weeks per year for a number that matches your actual situation.
Is this take-home pay or gross pay?
Gross — before tax, insurance premiums, retirement contributions or any other deductions. Take-home pay depends on your specific tax bracket, location and benefit elections, which vary too much (and change too often) for a single universal formula to estimate accurately.
How many paid weeks per year should I use?
Start from 52 and subtract any unpaid weeks off. Most salaried employees with standard paid vacation land around 50–52; hourly or contract workers with unpaid gaps should lower the number to match reality.
What if I work irregular hours?
Use your average hours per week over a few recent months rather than a single typical week — that smooths out the swings and gives a more representative annual figure.
This calculator shows gross pay estimates for general informational purposes only and does not account for tax, benefits or other deductions.