Should I count vacation days in working weeks?

No — that is the point. Working weeks excludes paid time off. We subtract (vacation + holidays) ÷ 5 from 52, because a typical work week is 5 weekdays. The annualised salary therefore matches the hours you actually work, not the calendar year.

Why does the US default differ from Europe?

US workers typically get around 10 vacation days plus 8 paid public holidays, so working weeks land near 48.4. In much of Europe, 25–30 vacation days plus ~8 holidays is the norm, putting working weeks near 45. The same hourly rate therefore implies a noticeably different annual salary depending on which region you assume.

Is this gross or net?

Gross. The calculator does not subtract income tax, social security, retirement contributions, or health insurance. To get net pay, apply your local tax rate to the annual figure.

What about overtime or bonuses?

Not included. The result is a base salary equivalent of straight-time hours. Overtime premiums, bonuses, and equity should be added on top of the figure shown here.

FINFinancial

Hourly Wage to Annual Salary

See what an hourly rate works out to as a yearly, monthly, and weekly salary — or run it the other way and find the hourly rate behind a posted salary. Adjust hours per week, vacation, and holidays to match your situation.

Currency

Direction

Pick the direction you know.

Hourly Rate(optional)

Annual Salary(optional)

Hours per Week

Vacation Days

days/year

Paid Holidays

days/year

Try an example

Enter values above to see results

How It Works

Formula

W = 52 - \dfrac{V + H}{5}

S_{\text{annual}} = R_{\text{hour}} \times h \times W

R_{\text{hour}} = \dfrac{S_{\text{annual}}}{h \times W}

Where

$W$: Working weeks per year(weeks)
$V$: Vacation days per year(days)
$H$: Paid holidays per year(days)
$h$: Hours worked per week(hours)
$R_{\text{hour}}$: Hourly rate
$S_{\text{annual}}$: Annual salary (gross)

Working weeks per year = 52 − (vacation + holidays) ÷ 5. From there, annual salary = hourly rate × hours per week × working weeks. The reverse direction divides annual salary by the same denominator to back out the hourly rate.

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