Hourly Wage Calculator

Free hourly wage calculator. Convert hourly pay to weekly, monthly, and annual income with overtime, tax estimates, and rate comparison tables.

About the Hourly Wage Calculator

The Hourly Wage Calculator converts your hourly pay rate into weekly, bi-weekly, monthly, and annual income figures. Add overtime hours with your premium multiplier to see the full picture of what your hourly wage really earns you over a year.

Hourly workers often underestimate their annual earning potential, especially when overtime is factored in. A $25/hour rate at 40 hours/week equals $52,000 annually — but add just 5 hours of weekly overtime at time-and-a-half, and that jumps to $61,750. This calculator makes those numbers instantly visible.

Use the comparison tables to see how different hourly rates and weekly hours translate into annual income. The preset buttons let you explore common scenarios, from part-time minimum-wage work to professional hourly rates. Whether you are evaluating a new job, negotiating a raise, or comparing hourly to salaried positions, this tool gives you the complete income picture from any hourly wage. Check the example with realistic values before reporting.

Why Use This Hourly Wage Calculator?

Hourly workers need to understand how their rate, hours, and overtime translate into annual income for tax planning, loan applications, and budgeting. This calculator also helps salaried workers evaluate freelance and consulting opportunities by showing what different hourly rates yield over time. Keep these notes focused on your operational context.

How to Use This Calculator

  1. Enter your hourly wage rate.
  2. Set hours worked per week.
  3. Adjust weeks per year (less than 52 if unpaid time off).
  4. Add overtime hours and the OT multiplier (usually 1.5x).
  5. Select an estimated tax bracket.
  6. Review annual, monthly, and weekly earnings.
  7. Use the comparison tables to evaluate different rates.

Formula

Regular Pay = Hourly Rate × Hours/Week × Weeks/Year Overtime Pay = (Hourly Rate × OT Multiplier) × OT Hours × Weeks Gross Annual = Regular Pay + Overtime Pay Net Annual = Gross × (1 − Tax Rate)

Example Calculation

Result: $61,750 gross / $48,165 net annual

Regular: $25 × 40 × 52 = $52,000. OT: $37.50 × 5 × 52 = $9,750. Total: $61,750. After 22% tax: $48,165.

Tips & Best Practices

Hourly Wage vs Salary: Making the Comparison

When comparing hourly positions to salaried offers, convert both to the same time unit. A $60,000 salary equals $28.85/hour at 40 hrs/week. But if the salaried role expects 50 hours, the effective rate drops to $23.08/hour. Meanwhile, an hourly worker at $27/hour with overtime would earn more per hour of actual work. Always compare effective hourly rates.

Overtime Laws and Regulations

Under the Fair Labor Standards Act (FLSA), non-exempt workers must receive at least 1.5× their regular rate for hours exceeding 40 in a workweek. Some states have additional rules — California mandates overtime after 8 hours in a day and double-time after 12 hours. Always check your state's laws to understand your overtime entitlements.

Maximizing Hourly Income

Strategic approaches to increasing hourly earnings include: obtaining certifications that qualify you for higher pay bands, shifting to industries with higher base rates, negotiating shift differentials (night/weekend premiums), seeking roles with guaranteed overtime, and building specialized skills that command premium consulting rates.

Frequently Asked Questions

How do I calculate annual salary from hourly wage?

Multiply hourly rate × hours per week × weeks per year. For full-time: rate × 40 × 52. Example: $20/hr × 40 × 52 = $41,600.

What is time and a half for overtime?

Time and a half means 1.5× your regular hourly rate. If you earn $20/hr, overtime pays $30/hr. FLSA requires this for non-exempt workers over 40 hours/week.

How many hours is full-time?

Full-time is typically 40 hours per week (2,080 hours/year). Some employers define full-time as 35-37.5 hours for benefits eligibility.

Are hourly workers eligible for benefits?

Under the ACA, employees working 30+ hours/week are considered full-time and eligible for employer health benefits. Company policies vary for other benefits.

How does overtime affect taxes?

Overtime income is taxed at your regular marginal rate — not at a special higher rate. However, extra income may push you into a higher bracket.

What is the federal minimum wage?

The federal minimum wage is $7.25/hour (as of 2024). Many states and cities have higher minimums, some exceeding $15/hour.

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