How to Calculate Hourly to Annual Salary

Convert hourly rate to annual salary and vice versa. Free calculator with tax estimation, freelance mode, and support for multiple currencies (USD, EUR, GBP, CNY).

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Step-by-Step Guide

1

Choose your calculation mode

Select whether you want to convert hourly to annual (if you know your hourly rate) or annual to hourly (if you know your annual salary). The calculator will automatically compute all related values.

2

Enter your rate and work schedule

Input your hourly rate or annual salary, then specify your hours per week and weeks per year. Standard full-time is 40 hours/week and 52 weeks/year (or 50 if taking 2 weeks unpaid vacation).

3

Select your currency

Choose from USD ($), EUR (€), GBP (£), CNY (¥), and other currencies. The calculator will display all results in your selected currency.

4

Review the breakdown

See your calculated hourly rate, daily rate (8 hours), weekly earnings, monthly salary, and annual total. All values update in real-time as you adjust inputs.

5

Estimate taxes with the tax slider

Adjust the tax rate slider (0-50%) to estimate your take-home pay. See gross annual, tax amount, net annual, and net monthly income at your chosen tax rate.

6

Enable freelance mode for detailed analysis

Freelancers should enable freelance mode to account for vacation days, sick days, non-billable time, and total work days. This reveals your actual effective hourly rate after unpaid time.

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Frequently Asked Questions

How do I convert hourly wage to annual salary?
Multiply your hourly rate by hours worked per week, then multiply by weeks per year. For example: $50/hour × 40 hours × 52 weeks = $104,000/year. For standard full-time (2,080 hours/year), simply multiply hourly rate by 2,080.
What is the standard number of work hours per year?
Standard full-time employment is typically 2,080 hours per year (40 hours/week × 52 weeks). However, if you take 2 weeks of unpaid vacation, it would be 2,000 hours (40 × 50 weeks).
How much should a freelancer charge compared to W-2 hourly?
Freelancers should typically charge 1.5-2x the equivalent W-2 hourly rate. This accounts for self-employment tax (15.3%), health insurance, retirement savings, unpaid vacation/sick days, non-billable admin time, and business expenses.
What percentage of income goes to taxes?
Tax rates vary by location and income level. In the US, federal income tax ranges from 10-37%, plus 7.65% for FICA (Social Security + Medicare). Self-employed individuals pay an additional 7.65% for the employer portion. State and local taxes add 0-13% depending on location.
How many billable hours do freelancers actually work?
Full-time freelancers typically achieve 20-30 billable hours per week despite working 40+ hours. Non-billable time includes marketing, admin, professional development, and client acquisition. Annual billable hours often range from 1,000-1,600 depending on the field.

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