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Free HR tools · Hourly to salary calculator

Hourly to Salary Calculator

Move a slider or type a figure. The breakdown updates as you go.

What do you have?

What you are paid for an hour of work, before tax.

The hours you actually work in a week, not the hours the contract says if the two differ.

What is an hourly to salary conversion

It is the sum that turns what you earn in an hour into what you earn in a year, and it needs one thing besides the rate: how many hours you work in a week.

Multiply the rate by the hours in a week, then by the weeks in a year. A rate of ₹385 an hour on a 40 hour week is ₹15,400 a week, and ₹8,00,800 a year. Every other line follows from the annual figure: divide by 12 for a month, by 52 for a week, by 26 for a fortnight.

The hours are what people get wrong, not the rate. Contract hours and worked hours are often not the same number, and the annual figure moves in step with whichever one you use. Put in the hours you actually work, and the answer describes the year you actually have.

The working

How the Conversion Is Worked Out

Three steps. Two multiplications get you to the year, and every other line on the panel is that figure divided by something.

  1. 01

    Rate times the hours in a week

    That is a week's pay. Use the hours you actually work, which is not always the number on the contract.

  2. 02

    Times the weeks in a year

    Fifty-two of them, which is what every payroll counts. That gives the annual figure the rest of the panel divides down from.

  3. 03

    Divide it back down

    By 12 for a month, 52 for a week, 26 for a fortnight. The daily figure comes off the rate instead, at 8 hours to a working day.

The Formula, Both Ways Round

The calculator above runs whichever of these you need. They are the same relationship rearranged, so an answer from one checks against the other.

  • Hourly rate to annual salary

    Hourly rate × Hours a week × 52

    Use this when you are quoted a rate and want to compare it against a salaried job.

  • Annual salary to hourly rate

    Annual salary ÷ (Hours a week × 52)

    Use this when you have a salary and want to know what an hour of your time is worth, or what to charge for one.

Read this before you quote it

What the Breakdown Assumes

Every line on the panel is gross pay on a steady week. These are the things that make a real year differ from it.

What it does not account for

  • Income tax, PF or any other deduction
  • Unpaid leave, or weeks you do not work
  • Overtime, or a different rate for it
  • Bonus, variable pay and reimbursements
  • Employer PF and gratuity, which are cost but not pay

What it does assume

  • 52 paid weeks in a year, the basis payroll uses
  • The same hours every week, at one rate
  • A working day of 8 hours for the daily line
  • Gross figures throughout, on both sides of the sum
  • Hours you actually work, which is what you entered

Six Reasons to Run This Conversion

Two numbers that look nothing alike can be the same money. This is where that matters.

Comparing a contract against a job

A rate and a salary are not comparable until one is written as the other. Convert first, then argue about which is better.

Setting a freelance rate

Start from the annual figure you need, divide by the hours you can actually bill, and you have a floor to quote above.

Costing a role before you open it

Turning a budgeted salary into an hourly cost tells you what an hour of that role is worth before anybody is hired into it.

Checking a staffing bill rate

The pay rate under a bill rate is what the margin sits on. Both need to be in the same units before the gap means anything.

Pricing overtime honestly

A salaried person still has an hourly rate. Knowing it is what makes a conversation about extra hours a real one.

Explaining an offer to a candidate

People think in whichever unit they were last paid in. Showing an offer in both is the fastest way to be understood.

Frequently
Asked Questions

What people ask when a rate and a salary have to be compared.

Still have questions?

Talk to the team and we will walk you through it.

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Multiply the hourly rate by the hours you work in a week, then by 52. A rate of ₹385 an hour on a 40 hour week is ₹15,400 a week and ₹8,00,800 a year. Use the hours you actually work rather than the hours on the contract if the two differ, because the annual figure moves with whichever one you put in.

Divide the annual salary by the hours you work in a year, which is your hours a week times 52. On ₹8,00,000 and a 40 hour week that is 2,080 hours, and ₹8,00,000 ÷ 2,080 is ₹384.62 an hour. Switch the calculator above to "Salary to hourly" and it does the same sum.

A year is 52 weeks and a day, so the exact figure is about 52.18. Payroll, contracts and every rate card use 52, and the difference is roughly a third of a per cent, which is far smaller than the rounding in any real timesheet. This page uses 52 so its answers match the ones on your payslip.

A working day of 8 hours, which is the hourly rate times 8. That is what somebody converting a rate wants to know. Some calculators divide the weekly figure by 7 instead, which gives a calendar day and a smaller number. The calendar basis is the right one for leave encashment and for gratuity, and there is a separate calculator on this site for gratuity.

No. Every line is gross, before income tax, PF and any other deduction. What actually reaches your account depends on your tax regime, your declared investments and what your CTC is made of. Treat these figures as what is earned, not what lands.

Not directly. The sum assumes the same hours every week at one rate. If you are paid a different rate for overtime, work the two out separately and add them, or enter your average weekly hours to get a figure that is closer to the year as a whole.

The calculator assumes 52 paid weeks. If you take unpaid weeks, multiply by the weeks you are actually paid for instead. A freelancer billing 44 weeks a year at the same rate earns roughly 15% less than the annual figure here, which is exactly the kind of gap worth knowing before you quote.

Whichever you want the answer in, and be consistent. Put in CTC and the hourly rate you get is the cost of an hour to your employer. Put in the fixed gross and you get what an hour earns you. They are different questions and both are useful; mixing them is what produces a figure that means nothing.

Hours, Rates and Payroll in One Place

Niyuk holds the timesheets, the rates and the payroll run together, so an hourly worker and a salaried one come off the same system rather than out of two spreadsheets.

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