How to Convert an Hourly Rate to Annual Salary
Converting an hourly wage to an annual salary is straightforward. The formula is:
Annual Salary = Hourly Rate × Hours Per Week × Weeks Per Year
For a full-time employee working 40 hours per week for 52 weeks, that's 2,080 total hours per year. A $20/hour wage equals $41,600 per year.
The Standard Work Year: 2,080 Hours
Most salary comparisons and job offers use 40 hours/week × 52 weeks = 2,080 working hours per year. Some calculations subtract 10 federal holidays (80 hours), arriving at 2,000 hours — but 2,080 is the accepted standard for most compensation benchmarking.
Common Hourly Wages and Annual Salary Equivalents
Based on 40 hours/week and 52 weeks/year:
| Hourly Rate | Annual Salary | Monthly Pay |
|---|---|---|
| $10.00/hr | $20,800 | $1,733 |
| $12.00/hr | $24,960 | $2,080 |
| $15.00/hr | $31,200 | $2,600 |
| $18.00/hr | $37,440 | $3,120 |
| $20.00/hr | $41,600 | $3,467 |
| $25.00/hr | $52,000 | $4,333 |
| $30.00/hr | $62,400 | $5,200 |
| $35.00/hr | $72,800 | $6,067 |
| $40.00/hr | $83,200 | $6,933 |
| $50.00/hr | $104,000 | $8,667 |
| $75.00/hr | $156,000 | $13,000 |
| $100.00/hr | $208,000 | $17,333 |
Part-Time and Non-Standard Schedules
Not everyone works 40 hours for 52 weeks. Use the inputs above to adjust for your actual schedule:
- Part-time (20 hrs/week): A $20/hr rate yields $20,800/year
- Seasonal (26 weeks): A $30/hr rate for half a year yields $31,200
- Contract work: Adjust weeks per year to match your contract length
Hourly vs. Salary: Key Differences
- Overtime eligibility: Hourly (non-exempt) workers are typically entitled to 1.5× pay for hours over 40/week under the FLSA. Most salaried "exempt" employees are not.
- Income predictability: Salary provides a consistent paycheck regardless of exact hours worked. Hourly income varies with hours.
- Benefits: Salaried roles more commonly include health insurance, PTO, and retirement plans — though this varies by employer.
Frequently Asked Questions
How many hours are in a work year?
A standard full-time work year contains 2,080 hours (40 hours/week × 52 weeks). Excluding 10 federal holidays gives 2,000 hours, but 2,080 is the standard used for most salary calculations.
What is $25 an hour annually?
At 40 hours/week for 52 weeks, $25/hour equals $52,000 per year ($25 × 40 × 52 = $52,000).
Is it better to be paid hourly or salary?
Neither is universally better — it depends on your role and situation. Hourly workers benefit from overtime pay. Salaried workers often gain stability, career advancement, and richer benefits packages. In demanding roles with heavy overtime, hourly can significantly out-earn an equivalent salaried position.
How do I calculate my hourly rate from my salary?
Divide your annual salary by total annual hours. For a $60,000 salary at 40 hrs/week: $60,000 ÷ 2,080 = $28.85/hour. Use our Salary to Hourly Calculator for an instant answer.