Hourly to Salary Calculator

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:

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 do I convert hourly pay to annual salary?

Multiply your hourly wage by hours worked per week, then by weeks worked per year. For a standard 40-hour week that is hourly rate × 40 × 52. At $25 an hour, that is $52,000 a year.

How many hours are in a work year?

A standard full-time work year contains 2,080 hours: 40 hours a week times 52 weeks. Excluding 10 federal holidays gives about 2,000 hours, and subtracting two weeks of vacation brings it near 1,920. Most employers still use 2,080 as the baseline for salary conversions.

What is $25 an hour annually?

At 40 hours a week for 52 weeks, $25 an hour equals $52,000 a year. At 35 hours a week it is $45,500, and at 45 hours a week it is $58,500 before any overtime premium. Hours assumed matter as much as the rate itself.

Does this account for unpaid time off?

Only if you tell it to. The standard conversion assumes 52 paid weeks. If you take unpaid leave, reduce the weeks-per-year input — two unpaid weeks means 50 weeks, which lowers annual earnings by roughly 4% at the same hourly rate.

How does overtime change my annual earnings?

Substantially, because overtime hours are paid at 1.5x. At $25 an hour, five overtime hours a week adds $187.50 weekly — about $9,750 a year, lifting total pay from $52,000 to roughly $61,750. That is why an hourly role with consistent overtime can out-earn a salaried role advertised at a higher number.

Is it better to be paid hourly or salary?

Neither is universally better. Hourly workers are usually non-exempt and legally entitled to overtime, so extra hours mean extra pay. Salaried exempt workers trade that for stability and often better benefits, but additional hours are uncompensated. In demanding roles with heavy overtime, hourly frequently out-earns an equivalent salaried position — compare total expected hours, not just the headline figure.

Are taxes included in this conversion?

No. This shows gross pay before taxes and deductions. Use the Paycheck Calculator to estimate take-home pay after federal income tax, FICA, and state tax.

To go the other direction, use the Salary to Hourly Calculator.