CalcRay
Income & Pay calculator

Hourly to Annual Salary Calculator (with Overtime)

Turn an hourly rate into annual, monthly, bi-weekly, and weekly gross pay — including overtime hours, your OT multiplier, and unpaid weeks off.

0 if none
1.5 = time-and-a-half
52 minus unpaid weeks off

An hourly-to-annual salary calculator converts an hourly wage into yearly gross pay: annual salary = hourly rate × hours per week × paid weeks per year, plus overtime at its multiplier. The familiar shortcut — multiply the rate by 2,080 hours — buries two assumptions inside one number: that you work exactly 40 hours every week, and that you are paid for all 52 weeks of the year. The moment either assumption is wrong, the shortcut misstates your income. This tool makes both assumptions editable and adds the term the shortcut cannot represent at all: overtime hours paid at time-and-a-half, double time, or any multiplier you set.

The output is the full ladder of gross pay — weekly, bi-weekly, monthly, and annual — plus a split the annual figure alone hides: how much of the year's income is base pay, how much is overtime, and overtime's share of the total. For anyone whose schedule regularly includes overtime, that share is the number worth knowing, because income that depends on overtime disappears when the overtime does.

How it's calculated

The math is two lines, applied in order:

Weekly pay = rate × hours + rate × OT multiplier × OT hours

Annual pay = weekly pay × paid weeks per year

Monthly pay follows the standard convention of annual ÷ 12, and the bi-weekly figure is a true two-week paycheck — weekly × 2 — rather than annual ÷ 26, so it reflects what a worked pay period actually pays even when you have unpaid weeks off. Base and overtime earnings are annualized separately, which is what makes the overtime-share figure possible. Every figure is gross, before taxes and deductions. Full formulas are on our methodology page, and the same code that computes the example below runs the tool above.

Worked example: $25 an hour with overtime

Take the calculator's default scenario: $25 an hour, 40 regular hours a week, 5 overtime hours at time-and-a-half, paid all 52 weeks. Base pay is $1,000 a week; overtime adds 5 × $37.50 = $187.50 more. Here is how that schedule — and four variations of it — annualizes:

Schedule at $25/hr Weekly Monthly Annual OT share
40 hrs, no OT, 52 wk$1,000.00$4,333.33$52,0000%
+5 OT hrs, 52 wk$1,187.50$5,145.83$61,75015.8%
+10 OT hrs, 52 wk$1,375.00$5,958.33$71,50027.3%
+5 OT hrs, 50 wk$1,187.50$4,947.92$59,37515.8%
40 hrs, no OT, 50 wk$1,000.00$4,166.67$50,0000%

Two comparisons carry the lesson. First, overtime: five hours a week at time-and-a-half turns a $52,000 job into a $61,750 one — $9,750 a year, nearly 16% of gross income, from what looks like a small schedule change. Second, paid weeks: the same schedule at 50 paid weeks instead of 52 drops the annual figure by $2,375, even though the weekly paycheck is unchanged — which is exactly why this tool computes bi-weekly pay from the week, not from the annual total. Note what the monthly column does in row four: unpaid weeks lower the monthly average, but no individual paycheck shrinks; the gap appears in the weeks with no paycheck at all.

When should you use this calculator?

Use it when an hourly number needs to become a yearly one: comparing an hourly or contract offer against a salaried package, filling in an annual income figure on an application when you are paid by the hour, or budgeting a year in which overtime is a regular part of the schedule rather than an occasional bonus. It is also the honest way to price a schedule change — the table above is the tool answering "what does dropping to 50 paid weeks cost?" and "what is five hours of weekly overtime worth?" as exact dollar amounts. For the reverse direction — turning a salary into an effective hourly rate, including paid time off — use the salary to hourly calculator; to translate a raise on top of either figure, the pay raise calculator picks up where this one stops.

What it deliberately does not do: estimate take-home pay. Withholding depends on filing status, state, and benefit elections, so the honest output is gross — and gross-to-gross is the fair way to compare offers.

Assumptions and limitations

  • All figures are gross (pre-tax). Income tax withholding, Social Security and Medicare, and pre-tax deductions reduce take-home pay; the IRS Tax Withholding Estimator projects federal withholding from your actual details.
  • The rate, hours, and overtime pattern are assumed constant across every paid week. Seasonal swings in overtime average out only if you enter the average.
  • Paid weeks means weeks you receive a paycheck for: 52 minus unpaid weeks off. Paid vacation and holidays do not reduce paid weeks.
  • The overtime multiplier is applied to the base rate. U.S. federal law generally requires at least 1.5× for non-exempt employees past 40 hours a week, but exemptions, state rules, and contract terms vary — enter what your employer actually pays.
  • Monthly = annual ÷ 12 is a convention, not a paycheck; months contain between 4 and 5 weeks. Bi-weekly = weekly × 2 is a real paycheck.
  • Benefits, bonuses, tips, and shift differentials are not modeled unless you fold them into the rate.

This page is educational content about how hourly pay annualizes. It is not financial advice and does not consider your personal circumstances. For decisions that matter, consult a qualified professional.

Last reviewed: 2026-07-09

Frequently asked questions

How do you calculate annual salary from an hourly rate?
Multiply the hourly rate by the hours worked per week, then by the weeks paid per year: annual = rate × hours × weeks. The common shortcut assumes 40 hours and 52 weeks — 2,080 hours — so $25 an hour is $52,000 a year. If you work overtime, add it as a separate term: overtime hours × rate × the overtime multiplier, per week, before annualizing. This calculator computes both terms explicitly, so the annual figure reflects the schedule you actually work rather than the 2,080-hour assumption. All results are gross (pre-tax) pay.
How much is $25 an hour per year with overtime?
At $25 an hour with a standard 40-hour week, base pay is $52,000 a year. Overtime at time-and-a-half adds $37.50 for each overtime hour: 5 overtime hours a week adds $9,750 a year for a total of $61,750, and 10 overtime hours adds $19,500 for a total of $71,500. Regular overtime moves the annual figure substantially — at 5 hours a week it is already about 16% of gross income — which is why this calculator itemizes base pay, overtime pay, and overtime’s share of the total separately.
How is overtime pay calculated?
Overtime pay is the hourly rate multiplied by an overtime premium, times the overtime hours: overtime pay = rate × multiplier × OT hours. The most common multiplier is 1.5 ("time-and-a-half"); some employers or agreements pay 2× ("double time") for holidays or extended shifts. In the U.S., federal law generally entitles non-exempt employees to at least 1.5× their regular rate for hours worked beyond 40 in a workweek, though exemptions and state rules vary. This calculator lets you set the multiplier and hours, and it treats the overtime rate as constant across the year.
Why is the bi-weekly figure not the same as annual pay divided by 26?
This calculator computes the bi-weekly figure as a real two-week paycheck: weekly pay × 2. Annual ÷ 26 gives the same answer only when you are paid for all 52 weeks of the year. If you enter fewer paid weeks — say 50, because of two unpaid weeks off — the annual total shrinks, but the paycheck you receive for a full two-week period does not. Dividing that smaller annual by 26 would understate the actual paycheck, so the tool reports what a worked pay period actually pays instead.
What should I enter for paid weeks per year?
Enter 52 minus any unpaid weeks off. Paid time off — vacation or holidays your employer pays for — does not reduce paid weeks, because you receive a paycheck for those weeks whether or not you work them. Unpaid time does: a seasonal worker with a month unpaid each year has roughly 48 paid weeks, and a contractor who takes two unpaid weeks of vacation has 50. At $25 an hour and 40 hours, the difference between 52 and 50 paid weeks is $2,000 of gross annual pay, so the input matters more than it looks.

Salary to Hourly

Convert annual salary to an hourly rate and back, accounting for hours per week, weeks worked, and paid time off.

Pay Raise

See what a raise is really worth: enter a percentage or dollar amount and get your new pay per year, month, paycheck, and week — plus the extra income over time.

See all income & pay calculators →