๐ฐ Hourly โ Annual Salary Converter
Enter an hourly wage along with hours per day, days per week, and weeks per year, and this tool calculates the equivalent annual and monthly salary. You can also enter an annual salary to work backward to an hourly rate. Handy for comparing a job posting's hourly wage against an annual salary, or for setting a freelance hourly rate.
How to use
- Choose the "Hourly โ Annual" or "Annual โ Hourly" tab.
- Enter the hourly wage or annual salary amount.
- Adjust hours per day, days per week, and weeks per year โ the result recalculates automatically.
How the calculation works
This tool converts between an hourly wage and an annual salary. It first works out annual working hours as hours per day ร days per week ร weeks per year. Hourly to annual: annual salary = hourly wage ร annual hours Annual to hourly: hourly wage = annual salary รท annual hours Monthly pay is the annual salary divided by 12. The defaults of 8 hours a day, 5 days a week and 52 weeks a year give 2,080 hours. Many Japanese companies give around 120 days off a year, which leaves about 245 working days โ about 1,960 hours at 8 hours a day. To allow for public holidays and paid leave, reduce the weeks per year to around 49.
Worked example
ยฅ1,200 an hour, 8 hours a day, 5 days a week, 52 weeks Annual hours: 8 ร 5 ร 52 = 2,080 Annual salary: 1,200 ร 2,080 = ยฅ2,496,000 Monthly: 2,496,000 รท 12 = ยฅ208,000 Annual salary of ยฅ4,000,000 At 2,080 hours: about ยฅ1,923 an hour At 1,960 hours (120 days off): about ยฅ2,041 an hour
Things to be aware of
- Results are gross (before tax and social insurance). Take-home pay is typically around 75โ85% of gross.
- Bonuses, overtime and allowances are not included.
- Japan's minimum wage is set by each prefecture and revised around October each year. Check the latest figure when comparing hourly wages.
FAQ
Why is the default for weeks per year 52?
A year has about 52 weeks (365 days รท 7). Reduce this number if you want to account for paid time off or holidays.
Does this account for taxes or social insurance?
No, this tool calculates gross (pre-tax) amounts. Take-home pay needs to be calculated separately by subtracting taxes and social insurance.
Does this include overtime pay or bonuses?
No, it only calculates amounts based on regular working hours. Use the Overtime Pay Calculator if you want to factor in overtime.