Methodology: Hourly to Salary Converter

1. Scope

Converts between hourly rate and annual salary with PTO, holidays, and overtime adjustments. It does not model bonuses, equity, or regional labour-cost differences.

2. Inputs and outputs

Inputs

hourlyRate number (currency/hr)
hoursPerWeek number default: 40
weeksWorkedPerYear number default: 48

Adjust for PTO and holidays.
overtimeHoursPerWeek number default: 0
overtimeMultiplier number default: 1.5

Outputs

annualSalaryEquivalent

hourly × weeklyHours × weeks + OT.
weeklyGross

hourly × weeklyHours + OT.

Engine source: src/lib/hourly-to-salary-converter/engine.ts

3. Formula / scoring logic

regular_annual  = hourly_rate * hours_per_week * weeks_worked
overtime_annual = ot_hours * hourly_rate * ot_multiplier * weeks_worked
annual_salary   = regular_annual + overtime_annual

4. Assumptions

Standard workweek is user-entered, not assumed to be 40.
Weeks-worked defaults to 48 to reflect typical PTO and holidays for US full-time work.
Overtime follows FLSA 1.5× the regular rate by default; salaried-exempt roles receive no OT.

5. Data sources

US Department of Labor — Fair Labor Standards Act overtime rules as of 2024
US BLS Occupational Employment and Wage Statistics (OEWS) as of 2024

6. Known limitations

Does not compute post-tax take-home; for that, see the Salary / Paycheck Calculator.
Global use requires adjusting weeks-worked and overtime rules for jurisdiction.

7. Reproducibility

Input
hourlyRate = $50, hours = 40, weeks = 48.

Expected output
annualSalary = $96,000, weeklyGross = $2,000.

8. Change log

2026-04-24 methodology page first published.