Calculating your gross pay from your hourly wage is simple on paper. Just take your hourly rate * hours worked. But paychecks can look off to your calculation if you forget about unpaid breaks, unpaid time off, or overtime rules. When your math and your check don't add up, it can get frustrating.
This guide keeps it practical. You will get the formula, a step-by-step example, overtime basics, and a quick way to convert weekly gross pay into bi-weekly, semi-monthly, and monthly numbers.
Gross pay formula from an hourly wage
Gross pay is your earnings before taxes, benefits, and other deductions. If you want the gross pay calculation from hourly wage formula in one line, it is:
Gross pay = hourly rate * paid hours worked
Use paid hours, not scheduled hours. Unpaid breaks or unpaid time off reduce paid hours, so they reduce gross pay.
For an annual estimate, multiply by the weeks you actually work: hourly rate * hours per week * weeks per year. If your
schedule varies, averaging a few recent weeks is more honest than assuming 40 hours every week.
Step-by-step gross pay example
Here is a gross pay calculation from hourly wage example using $22.50 per hour, 40 regular hours, and 4 overtime hours in one week.
| Line item | Calculation | Amount |
|---|---|---|
| Regular pay | $22.50 * 40 hours | $900.00 |
| Overtime rate | $22.50 * 1.5 | $33.75 |
| Overtime pay | $33.75 * 4 hours | $135.00 |
| Gross weekly pay | $900.00 + $135.00 | $1,035.00 |
| Gross bi-weekly pay | $1,035.00 * 2 | $2,070.00 |
| Gross monthly average | $1,035.00 * 52 / 12 | $4,485.00 |
Methodology: Regular pay = hourly rate * regular hours; overtime pay = hourly rate * 1.5 * overtime hours; weekly gross = regular + overtime; monthly average = weekly * 52 / 12.
If you work no overtime, set overtime hours to 0 and the gross weekly pay is $900. If your hours swing week to week, average a few recent weeks for a steadier view.
Overtime and who it applies to
The U.S. Department of Labor explains that non-exempt employees generally earn overtime at one and one-half times their regular rate for hours over 40 in a workweek. Some roles are exempt under federal or state rules, so confirm your classification if you are unsure. For a step-by-step example, see gross pay with overtime.
Gross pay = (regular hours * hourly rate) + (overtime hours * hourly rate * 1.5)
- Separate regular and overtime hours. Regular hours are typically capped at 40.
- Calculate regular pay. Multiply regular hours by your hourly rate.
- Add overtime pay. Multiply overtime hours by 1.5 times your hourly rate.
What counts as hours worked
Gross pay only includes hours that count as work time. The DOL notes that hours worked include all time an employee is required or permitted to work.
- Required training or meetings can count as work time.
- Waiting time may count when you cannot use the time freely.
- Travel between job sites during the workday can count.
Breaks, on-call time, and travel rules vary by job and state. Check your workplace policy if something feels inconsistent.
Pay period conversions
Once you have weekly gross pay, converting to other pay periods is straightforward.
- Weekly gross pay: hourly rate * hours per week.
- Bi-weekly gross pay: weekly gross pay * 2 (26 paychecks per year).
- Semi-monthly gross pay: weekly gross pay * 52 / 24.
- Monthly gross pay (average): weekly gross pay * 52 / 12.
Monthly numbers are averages. Some months have three paychecks, so your total received can be higher even when your hourly rate stays the same.
Gross pay vs net pay (why your paycheck feels smaller)
Gross pay is the starting point. Net pay is what you take home after taxes and deductions like health insurance, retirement contributions, and other benefits. That is why a gross pay calculation from hourly wage will not match your deposit exactly. To calculate your net pay, you will take your gross pay and subtract your state and federal tax withholdings, plus whatever other deductions are removed from your paycheck like health insurance, 401k, and similar benefits.
If your net pay feels low, review the withholdings and deductions on your pay stub before assuming the hourly math is wrong.
Sanity-check your gross pay
- Use paid hours, not scheduled hours. Unpaid breaks lower paid time.
- Adjust for unpaid time off. A vacation week with no pay lowers annual gross.
- Confirm overtime eligibility. Some roles are exempt from overtime.
- Include premiums when they apply. Shift differentials, tips, or bonuses raise gross pay.
- Treat monthly conversions as averages. They are not exact checks.
If you want to compare an hourly offer to a salary or see pay-period conversions fast, the Salary to Hourly Calculator handles the math and lets you test overtime and bonus scenarios.
Run your numbers in seconds. Enter your hourly rate and hours to see weekly, bi-weekly, semi-monthly, and annual gross pay.
Open the calculatorBottom line
Converting hourly wage to gross pay is straightforward: hourly rate * paid hours, with overtime added when it applies. The harder part is making sure the hours are counted correctly and the pay period conversion matches your paycheck schedule.
If your gross pay still looks off, compare your math to the pay stub line items and ask about any time rules or deductions you do not recognize. Clarity beats guessing.
Sources
Assumptions: Examples assume non-exempt overtime paid at time-and-a-half after 40 hours in a workweek, steady weekly hours, and gross pay before taxes or deductions.
Important Disclosure: This article is for educational purposes and isn't personalized financial advice. Consult a qualified professional for decisions specific to your situation.