Hourly wage to annual salary
A quoted hourly wage only tells part of the story. To estimate annual gross earnings, multiply the hourly rate by paid hours each day, paid days each week and paid weeks in the year. Use paid weeks rather than calendar weeks if some weeks are entirely unpaid.
Worked example: full-time schedule
At $25 per hour and eight paid hours on each of five days, the daily amount is $200 and the weekly amount is $1,000. Across 52 paid weeks that is $52,000 per year. An average month is $52,000 divided by 12, or $4,333.33, rather than exactly four weeks.
Monthly versus four-week pay
There are approximately 4.333 weeks per month in a 52-week year. Four weekly paychecks and an average calendar month are not identical. If your employer pays weekly, some months have five paydays; the monthly figure on this page is an average for budgeting.
What biweekly pay means
Biweekly normally means a paycheck every two weeks, yielding about 26 regular pay periods across a 52-week year. Semimonthly means twice each month, or 24 periods annually. This calculator displays two weeks of gross earnings for its biweekly result, not a semimonthly payroll amount.
Paid breaks, unpaid time and overtime
Enter only compensable hours. If you have an unpaid lunch break, subtract that from the hours worked for wage calculations. Overtime may be paid at an increased multiplier depending on the employer and jurisdiction; this tool does not automatically apply overtime premiums.
Vacation, holidays and weeks worked
Paid vacation generally continues your earnings; unpaid leave can reduce annual pay. If you only work 48 paid weeks, set weeks to 48 rather than 52. For seasonal work, use a schedule that reflects how many weeks you actually expect to be paid.
Gross versus take-home pay
Gross pay is earnings before income tax, social insurance, benefit premiums, retirement contributions and other deductions. Actual take-home pay depends on location and personal circumstances. Use a region-specific paycheck or tax calculator for net income estimates.
Comparing job offers fairly
Compare annualized gross pay alongside benefits, hours, commute, job security, leave and overtime policies. A higher hourly rate with fewer available hours might yield lower annual earnings. Always confirm the employer’s pay-period rules rather than relying only on conversions.
How gross pay is annualized
This calculator begins with an hourly pay rate and your paid schedule. Weekly gross pay = hourly wage × paid hours per day × paid days per week. Annual gross pay then multiplies the weekly amount by the number of paid weeks you enter. The monthly figure is an annual average divided by twelve, not necessarily the amount on each calendar month’s payslip.
Example with unpaid time off
At $25 per hour, eight paid hours a day and five paid days a week, weekly gross pay is $1,000. If you are paid for 52 weeks, the annual estimate is $52,000. If you are paid for only 48 weeks, the annual estimate falls to $48,000. Enter paid weeks rather than automatically assuming all calendar weeks are paid.
Common pay frequencies compared
| Pay period | Based on $52,000/year |
|---|---|
| Weekly | $1,000.00 |
| Every two weeks | $2,000.00 |
| Twice per month | $2,166.67 |
| Monthly average | $4,333.33 |
Biweekly pay means 26 pay periods per 52-week year, while semimonthly means 24. These schedules produce different payment amounts even for the same annual total.
Gross salary is not take-home pay
Gross pay is before income tax, social insurance contributions, pension contributions, benefit premiums or other withholding. Overtime multipliers, tips, bonuses and commissions are not modeled unless already reflected in the entered hourly wage and schedule. A paycheck calculator may be better for estimating an actual deposit after deductions.