Hourly to Salary Calculator

Multiply the hourly rate by 2,080 (40 hours times 52 weeks) for a standard full-time annual equivalent. For example, $22/hr equals $45,760 annually before taxes. Adjust downward for paid time off and holidays if calculating actual billable-hours earnings, since the average US employee takes 10-14 paid holidays per year according to BLS data.

Benefits add 25-40% on top of base salary according to BLS employer cost data for 2025. A $45,000 salary worker costs $56,250-63,000 fully loaded including employer payroll taxes (7.65%), health insurance contributions ($6,000-10,000), 401(k) match (3-5%), and paid leave. Always use fully loaded cost when comparing hourly contractors to salaried employees.

Multiply your hourly rate by 2,080 (40 hours × 52 weeks). For example, $25/hr equals $52,000 annually at full-time. Remember to account for paid holidays, PTO, and federal holidays which reduce actual working hours if you are estimating real take-home from billable time.

Small business hourly rates vary widely: administrative roles $14-20/hr, skilled trades $22-42/hr, and professional services $35-85/hr. The federal minimum wage is $7.25/hr but many states set higher floors ($15-17/hr). Competitive rates are typically 10-20% above market average to attract and retain talent.

Use hourly pay for roles with variable hours, part-time positions, and roles requiring overtime tracking. Use salary for management, professional roles, and positions requiring flexibility. Salaried employees often cost 5-10% more due to benefits expectations but provide scheduling predictability.

Review pay rates annually during performance reviews and benchmark against market data every 12 months. Conduct a full compensation audit every 2 years to ensure pay equity. The average US salary increase in 2025 is 4-5%, falling below this risks losing talent to competitors.

Gross hourly rate is pay before deductions. Net is take-home pay after federal and state income tax, FICA (7.65%), and any 401(k) or health insurance contributions. A $25/hr gross rate yields approximately $19-20/hr net for a typical filer. Always discuss gross rates when negotiating and use net rates for personal budgeting.

Calculate your target annual income, add all business expenses (tools, taxes, insurance, professional development), then divide by your realistic billable hours (typically 60-70% of total work hours).

Base salary, employer payroll taxes (FICA, FUTA, SUTA), health insurance, 401(k) match, benefits, equipment, office space, and training overhead to produce a fully loaded employee cost.

Replacement recruitment cost, onboarding and training, lost productivity during ramp-up, knowledge drain, management time, and temporary cover, totaling 50-200% of the departing employee's annual salary per departure.

Use a structured scoring framework that rates each skill dimension on a consistent scale (1-10) with clear criteria for each level. Combine practical assessments (work samples, technical tests) with behavioral interview questions.

Your employer brand is the reputation you have as a place to work, what candidates, employees, and ex-employees say about working for you, both publicly and privately.