Hourly Wage Calculator
How to Use This Calculator
- 1
Enter your annual salary and weeks worked
Use gross salary before taxes and deductions, then enter the weeks per year covered by that salary.
- 2
Set regular hours and overtime
Enter Regular Hours per Week separately from Overtime Hours per Week. Set Overtime Pay Multiplier to the rate you want to model, such as 1.5x.
- 3
Review the base and blended rates
Hourly Wage is annual salary divided by regular hours only. Annual Earnings adds the calculator's estimated overtime pay to that salary.
Example Calculation
A salaried employee earns $60,000 for a 52-week year, works 40 regular hours per week, and has no overtime.
Annual Salary ($)
60,000
Weeks Worked per Year (weeks)
52
Regular Hours per Week (hrs)
40
Overtime Hours per Week (hrs)
0
Overtime Pay Multiplier (x)
1.5
Results
Hourly Wage
$28.85
Annual Earnings
$60,000
Monthly Earnings
$5,000
Weekly Earnings
$1,154
Daily Earnings
$231
Effective Hourly Rate
$28.85
Insights card shows the base hourly equivalent and whether overtime is included.
Tips
Five overtime hours a week add $11,250 at a 1.5× multiplier
Change Overtime Hours per Week from 0 to 5. At a $60,000 salary, 40 regular hours, 52 weeks, and a 1.5× multiplier, the base rate is $28.8462 and estimated overtime adds $11,250 annually.
A 50-week salary schedule raises the calculated base rate
Change Weeks Worked per Year from 52 to 50 while keeping the salary and hours fixed. The base rate changes from $28.85 to $30.00 because the same salary is divided across fewer regular hours.
Changing the overtime multiplier changes the blended rate
With five overtime hours a week, compare 1.5x with 2x. The base Hourly Wage stays the same, but estimated Annual Earnings and Effective Hourly Rate rise with the multiplier.
What this calculator estimates
An hourly wage is the gross annual salary divided by the number of regular work hours in a year. This calculator also estimates overtime earnings, total annual earnings, and pay averages by month, week, and day.
The overtime estimate is added to the entered salary. Use the calculator when the salary covers regular hours and overtime is separate; it does not identify whether your employer already includes overtime in a salary or whether overtime is legally owed.
How the calculation works
Regular annual hours = Weeks worked × Regular hours per week
Base hourly wage = Annual salary / Regular annual hours
Overtime pay = Base hourly wage × Overtime multiplier × Overtime hours per week × Weeks worked
Total annual earnings = Annual salary + Overtime pay
Effective hourly rate = Total annual earnings / (Regular annual hours + Overtime hours)
For the example, regular annual hours are 52 × 40 = 2,080. The base hourly wage is $60,000 / 2,080 = $28.8462, which displays as $28.85. With no overtime hours, overtime pay is $0, so annual earnings remain $60,000.
Monthly earnings are $60,000 / 12 = $5,000. Weekly earnings are $60,000 / 52 = $1,153.85, displayed to the nearest dollar as $1,154. Daily earnings divide the weekly amount across five regular workdays: $1,153.85 / 5 = $230.77, displayed as $231.
How overtime changes the blended rate
Overtime increases total earnings, but it also increases the total hours used to calculate the effective hourly rate. The base Hourly Wage remains salary divided by regular hours; the blended Effective Hourly Rate includes overtime hours.
| Overtime hours/week | Multiplier | Estimated overtime/year | Total annual earnings |
|---|---|---|---|
| 0 | 1.5x | $0 | $60,000 |
| 5 | 1.5x | $11,250 | $71,250 |
| 5 | 2x | $15,000 | $75,000 |
These are arithmetic estimates based on the entered assumptions, not a determination of the legally correct overtime rate. Actual overtime calculations can depend on the employee's classification, compensation structure, and applicable state law. The Department of Labor overtime page explains federal requirements.
When to use a different calculator
- Convert hourly pay into annual and paycheck-period amounts → hourly to salary calculator
- Compare an hourly offer with a salary offer → salary comparison calculator
- Convert an hourly rate to annual pay and estimate paid vacation value → hourly to annual salary converter
- Estimate a tipped worker's wage against minimum-wage requirements → tipped minimum wage calculator
The Bureau of Labor Statistics Occupational Employment and Wage Statistics reports wage estimates by occupation and area. Compare the same occupation and location when assessing whether an hourly equivalent is competitive.
Frequently Asked Questions
How do I calculate an hourly wage from an annual salary?
Divide annual salary by regular hours per week multiplied by weeks worked per year. For a $52,000 salary at 40 hours a week for 52 weeks, annual hours are 40 × 52 = 2,080 and the hourly equivalent is $52,000 / 2,080 = $25.
Why is the effective hourly rate different from the hourly wage?
The base Hourly Wage divides salary by regular hours only, while Effective Hourly Rate divides total earnings by regular and overtime hours combined. When overtime is entered, the effective rate reflects both the added pay and added hours.
Does the calculator add overtime pay to my annual salary?
Yes, it adds estimated overtime pay on top of the entered Annual Salary. That treatment fits a scenario where the salary covers regular work and overtime is paid separately; it does not model a salary that already includes overtime.
Does entering 1.5x prove that I am legally entitled to overtime?
No, the multiplier is an input assumption, not a legal eligibility test or payroll determination. Federal overtime rules cover many nonexempt employees but include classification and pay-calculation rules; check the Department of Labor's overtime guidance.
Should I use gross or take-home annual salary?
Use gross salary before taxes and deductions to calculate a gross hourly equivalent. Take-home pay varies with withholding, benefits, and other deductions, so it does not describe the underlying wage rate.