Question 1

How many work hours are in a year?

Accepted Answer

A standard full-time work year is 2,080 hours — calculated as 40 hours per week × 52 weeks. However, many people work fewer hours accounting for unpaid vacation time. If you take 2 weeks unpaid vacation, it's 2,000 hours (40 × 50). If you work a different schedule, multiply your hours per week by the number of weeks you actually work each year. Some salaried positions expect more than 40 hours, in which case your effective hourly rate is lower than the simple calculation suggests.

Question 2

How do I calculate annual salary from hourly rate?

Accepted Answer

Multiply your hourly rate by your weekly hours, then by the number of weeks you work per year. The standard formula is Hourly Rate × 40 hours/week × 52 weeks = Annual Salary. For example, $25/hour = $25 × 40 × 52 = $52,000/year. If you work part-time, adjust the hours accordingly — e.g., 30 hours/week × 52 weeks = 1,560 hours/year, so $25/hour × 1,560 = $39,000/year.

Question 3

Does this include overtime pay?

Accepted Answer

This calculator shows your base salary calculation without overtime. However, you can use the overtime feature to add expected overtime hours. If you regularly work 45 hours per week, the overtime calculator accounts for 40 hours at your regular rate and 5 hours at 1.5× your rate. This is important because many hourly workers significantly underestimate their actual annual earnings when they regularly work overtime.

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