Salary Converter

Convert hourly rate ↔ annual salary with real-world deductions.

Currency:

Hourly Rate:

Hours/Week:

Weeks/Year:

Unpaid Weeks:

Sick Days/Year:

Tax Rate %:

How This Tool Works

Operation: The Salary Converter computes the annual equivalent of an hourly wage, and vice versa, while accounting for unpaid time off, sick days, and tax rates. The core formulas are:

Annual Salary = Hourly Rate × Hours Per Week × Weeks Per Year
Hourly Rate = Annual Salary / (Hours Per Week × Weeks Per Year)
Weeks Per Year = 52 − Unpaid Weeks Off
Net Annual Pay = Gross Annual Pay × (1 − Tax Rate / 100)
Net Monthly Pay = Net Annual Pay / 12

The tool uses configurable inputs: hourly rate or annual salary (bidirectional), hours per week (default 40), unpaid weeks per year (default 0, e.g., 4 for unpaid leave), sick days per year (default 0), and a tax rate (default 20%). All calculations use standard JavaScript arithmetic and update in real-time as you adjust any input.

Key Benefits of Using the Salary Converter

Privacy-protected salary modelling: Your wage data — potentially revealing your actual earnings — is processed entirely in your browser. No income information is ever uploaded, stored, or transmitted. Essential for workers who do not want their compensation data tracked by third-party services.
Bidirectional conversion: Start with either your hourly rate or your annual salary — the tool calculates the other instantly. Change any variable (hours, weeks, unpaid time, tax rate) and both directions update simultaneously.
Comprehensive net pay breakdown: Beyond the gross salary, the tool applies your specified tax rate to estimate net (take-home) pay on annual, monthly, and hourly bases — giving you a realistic picture of what you actually keep.

Practical Real-World Use Cases

Hourly workers evaluating full-time offers: A freelancer earning ₹800/hour and considering a salaried position of ₹12 LPA can convert their hourly rate to annual (at 40hrs × 48 weeks = ₹15.36 LPA) and compare which arrangement yields higher net income after accounting for unpaid time.
Salaried employees calculating true hourly rate: An employee with a ₹6 LPA salary who actually works 50 hours per week can compute their effective hourly rate — revealing a much lower per-hour figure than the nominal headline number — useful for negotiating overtime or comparing against contract work.
Job seekers comparing international offers: A professional evaluating a US-based offer of $35/hour (before tax) against a UK offer of £45,000/year can convert both to monthly net income after country-specific tax rates, enabling apples-to-apples compensation comparison.

Frequently Asked Questions (FAQ)

Does this include deductions beyond income tax (PF, insurance)?

No — the calculator only applies an income tax percentage. For a more detailed breakdown including EPF, professional tax, and other deductions in India, use the In-Hand Salary Calculator instead.

How many working weeks per year should I use?

Standard full-time: 52 weeks minus 4 weeks paid leave = 48 working weeks. If you take unpaid leave, subtract additional weeks. The calculator defaults to 52 weeks for gross annual projection — adjust the unpaid weeks field to match your situation.

Is the net pay calculation accurate for taxes?

The tax calculation is a flat percentage estimate. Real-world tax is calculated on progressive slabs with deductions. For precise Indian tax calculations, use the dedicated Salary Calculator which implements the full Old and New regime tax slabs.