Phase 4 · General Utility
Hourly to Salary Calculator
Your hourly rate hides two numbers: the salary it really adds up to, and the take-home that actually lands in your account. See both — overtime, deductions and taxes included.
What is my hourly rate as an annual salary?
Multiply hours by rate by paid weeks: gross = (hours × rate + overtime × rate × 1.5) × weeks. The familiar shortcut — hourly × 2,080 — assumes 40 hours across all 52 weeks and no unpaid time off, which is why it overstates the year for anyone whose hours vary.
- Worked example (2026, single, defaults on this page): $28/hr for 40 hours over 52 weeks is $58,240 gross.
- After $3,000 of pre-tax deductions, $4,455 of FICA, $4,449 of federal tax and $2,762 of state tax at 5%, take-home is $43,574.
- Overtime counts at 1.5×, so 5 overtime hours a week at this rate adds $10,920 of gross — more than a 15% raise on base hours.
- Compare offers on take-home, not gross. An hourly role with no paid leave loses roughly 2 weeks of pay against a salaried one at the same headline rate.
Under the hood
The math, fully exposed
We build gross pay from your hours, then subtract each tax layer to reach take-home (single filer, 2026 brackets, $16,100 standard deduction):
Gross = (hours × rate + overtime × rate × 1.5) × weeks
FICA = 6.2% Social Security (to the wage cap) + 1.45% Medicare
Federal taxable = gross − pre-tax deductions − standard deduction
Federal tax = progressive 2026 single brackets (10%→37%)
State tax = (gross − deductions) × your state rate
Take-home = gross − deductions − federal − state − FICA
- Progressive means tiered: only the income inside each bracket is taxed at that bracket's rate — your effective rate is always below your top marginal rate.
- Pre-tax deductions do double duty: money into a 401(k) or HSA isn't take-home cash, but it lowers your taxable income, so it reduces your tax bill at the same time.
- An estimate, not a filing: we assume a single filer taking the standard deduction and a flat state rate. Credits, itemized deductions and local quirks will shift your real number.
Your directives
What to do next, based on your numbers
Adjust the sliders to generate tailored recommendations.
Answers
Frequently asked questions
How do I convert an hourly wage to an annual salary?
Multiply your hourly rate by hours worked per week, then by the number of paid weeks in the year: rate × hours × weeks. The common shortcut is 40 hours × 52 weeks = 2,080 hours, but that assumes zero unpaid time off — lower the weeks slider if you take unpaid leave, and add overtime hours separately at 1.5×.
Why is my take-home pay so much lower than my salary?
Several deductions stack up before money hits your account: federal income tax (progressive brackets), FICA payroll tax (7.65% for Social Security and Medicare), state and local income tax, and any pre-tax contributions like a 401(k) or health insurance. Together these commonly take 20–35% of a gross salary.
What is the difference between marginal and effective tax rate?
Your marginal rate is the rate on your next dollar — the top bracket you reach. Your effective rate is your total tax divided by your total income, which is always lower because the early brackets are taxed at lower rates. A 22% marginal earner often has an effective federal rate closer to 12–14%.
Does the 40 × 52 rule overstate my pay?
It can. 2,080 hours assumes you're paid for all 52 weeks with no unpaid time off, and that you never miss hours. If you take unpaid leave, work seasonally, or have variable hours, your real annual figure is lower — which is exactly why the weeks and hours here are sliders you can match to reality.