Guide
How to Convert an Hourly Wage to an Annual Salary
To turn an hourly wage into a yearly figure, multiply the rate by the hours you work in a week, then by the weeks you work in a year. The quick version everyone uses is:
annual salary ≈ hourly rate × hours per week × 52
At $25 an hour, 40 hours a week: 25 × 40 × 52 =
$52,000. That is the headline number on job postings and the one
used to compare an hourly role to a salaried offer. It is an
approximation, and this guide covers what it leaves out.
The 2,080-hour shortcut
40 × 52 = 2,080, so full-time annual pay is just
hourly rate × 2,080. Handy conversions:
| Hourly | × 2,080 | Per month |
|---|---|---|
| $15 | $31,200 | $2,600 |
| $20 | $41,600 | $3,467 |
| $25 | $52,000 | $4,333 |
| $30 | $62,400 | $5,200 |
| $40 | $83,200 | $6,933 |
| $50 | $104,000 | $8,667 |
Going the other way, divide a salary by 2,080 for the equivalent rate: $60,000 ÷ 2,080 ≈ $28.85 an hour. See how many work hours are in a year for why 2,080 is the convention and how it drifts.
What the quick formula overstates
Using 52 full weeks assumes you are paid for every hour of every week. An hourly worker usually is not:
- Unpaid time off. If you take two weeks off without pay, you work 50 weeks, not 52.
25 × 40 × 50 = $50,000. - Unpaid holidays. Many hourly jobs do not pay for public holidays. Ten unpaid holidays is another ~80 hours, about $2,000 at $25/hr.
- Variable hours. If your schedule swings between 30 and 40 hours, your real annual pay tracks the average, not the peak.
- Gaps between jobs or shifts cut short. Seasonal and on-call work rarely hits 2,080 paid hours.
What it can understate
- Overtime. If you regularly work 45 hours, the 5 overtime hours are paid at 1.5×. At $25/hr that is
(40 × 25 + 5 × 37.50) × 52 = $61,750, well above the $52,000 headline. - Shift differentials and bonuses add to the real total.
Gross is not take-home
Every figure above is gross — before tax. Federal income tax, Social Security and Medicare (FICA), and state tax reduce what reaches your account. A $52,000 gross salary commonly lands somewhere in the low-to-mid $40,000s in take-home, depending on your state, filing status, and pre-tax benefits. See gross pay vs take-home pay.
Comparing an hourly job to a salaried offer
Put both on the same basis before deciding:
- Convert the hourly rate using your realistic paid weeks, not 52.
- Add expected overtime for the hourly role; salaried exempt roles usually pay none.
- Value benefits separately — paid leave, health premiums, and retirement match can be worth several thousand dollars a year.
- Compare take-home, not gross, if the pre-tax benefit packages differ.
Run your numbers
The Salary to Hourly Calculator converts in both directions and lets you set weeks per year and PTO. The Hourly Pay Calculator projects weekly, monthly, and annual gross including overtime, and the Hours Worked Calculator works out your real annual hours from your schedule.