How to Convert Hourly Pay to Annual Salary

An hourly wage can be converted to an annual salary by multiplying the hourly rate by the hours worked per week and the number of paid weeks per year. For a standard 40-hour workweek and 52 paid weeks, $25 per hour equals $52,000 per year before taxes and deductions.

An hourly-to-salary conversion helps employees, freelancers, job seekers, and employers compare hourly pay with annual compensation. The calculation can be adjusted for part-time work, different weekly hours, and fewer paid working weeks.

If you want to check different hourly rates quickly, use the HR to Salary calculator.

How to Calculate Annual Salary Based on Hourly Rate

To calculate annual salary from an hourly rate, multiply the hourly wage by the number of hours worked each week and the number of paid weeks per year.

Annual salary = hourly rate × hours per week × weeks per year

For example, an employee earning $25 per hour and working 40 hours per week for 52 weeks earns:

$25 × 40 × 52 = $52,000 per year

The $52,000 figure is gross annual salary. Gross salary is the amount before taxes, insurance, retirement contributions, and other payroll deductions.

Formula for Hourly to Annual Salary Conversion

The hourly-to-annual salary formula uses three values:

• Hourly rate: pay received for one hour of work.
• Hours per week: the employee's regular weekly working hours.
• Weeks per year: the number of paid working weeks.

The standard calculation uses 40 hours per week and 52 weeks per year.

For a different work schedule, replace the standard values with the actual working hours and paid weeks.

For example, a $30 hourly wage at 35 hours per week for 52 weeks produces:

$30 × 35 × 52 = $54,600 per year

How to Calculate Hourly Rate Based on Annual Salary

You can reverse the calculation when you know the annual salary.

Hourly rate = annual salary ÷ (hours per week × weeks per year)

For example, an employee earning $60,000 per year and working 40 hours per week for 52 weeks has an hourly rate of:

$60,000 ÷ (40 × 52) = $28.85 per hour

This calculation uses 2,080 annual working hours:

40 × 52 = 2,080 hours

The same method works for different working schedules. Someone working 30 hours per week has fewer annual working hours, so the equivalent hourly rate changes.

How to Use an Hourly to Annual Salary Calculator

An hourly-to-annual salary calculator simplifies the conversion by calculating weekly, monthly, and annual pay from the information you enter.

You normally need three inputs:

1. Hourly pay
2. Hours per week
3. Paid weeks per year

For example, enter:

• Hourly rate: $20
• Hours per week: 40
• Weeks per year: 52

The resulting annual salary is $41,600.

You can use the hourly-to-annual salary calculator to compare hourly pay with its weekly, monthly, and annual equivalents.

Part-Time vs Full-Time Hours

Working hours have a direct effect on annual earnings.

An employee earning $25 per hour at 40 hours per week earns:

$25 × 40 × 52 = $52,000

At 30 hours per week, the same hourly wage produces:

$25 × 30 × 52 = $39,000

The hourly wage remains $25 in both examples. The annual salary changes because the weekly working hours change.

Part-time employees can use their actual weekly hours instead of the standard 40-hour workweek.

What Happens When You Work Fewer Than 52 Weeks?

The standard hourly-to-salary calculation assumes 52 paid weeks per year.

An employee earning $25 per hour and working 40 hours per week for 50 paid weeks earns:

$25 × 40 × 50 = $50,000

The annual salary is $2,000 lower than the 52-week calculation.

The weeks-per-year value therefore matters when estimating annual compensation for employees who have unpaid time away from work or another non-standard schedule.

Overtime Pay Calculation

Overtime pay can increase total earnings when additional hours receive a higher hourly rate.

For example, a regular hourly wage of $20 with overtime paid at 1.5 times the regular rate gives:

$20 × 1.5 = $30 per overtime hour

Five overtime hours produce:

$30 × 5 = $150

Regular annual salary calculations should not include overtime unless the overtime hours are part of the expected earnings.

Overtime also changes the total annual compensation when it occurs regularly. An employee can calculate regular wages separately from overtime earnings to get a clearer estimate.

How to Calculate a Pay Raise

An hourly pay increase changes both the hourly rate and the equivalent annual salary.

Suppose an hourly wage increases from $20 to $22.

At 40 hours per week and 52 paid weeks:

$22 × 40 × 52 = $45,760

The previous annual salary was:

$20 × 40 × 52 = $41,600

The annual difference is:

$45,760 − $41,600 = $4,160

A 10% hourly pay increase therefore adds $4,160 to annual gross earnings under this work schedule.

You can use the salary conversion calculator to check how a different hourly rate changes your estimated annual pay.

Common Hourly Rates and Annual Salaries

The following table uses 40 hours per week and 52 paid weeks per year.

These figures represent gross pay and use the standard 40-hour, 52-week schedule.

For other working schedules, enter the actual values into the HR to Salary calculator.

Gross Salary vs Take-Home Pay

An hourly-to-annual salary calculation normally shows gross salary, not take-home pay.

Gross salary is calculated before deductions such as:

• Income taxes
• Social Security and Medicare taxes
• Health insurance premiums
• Retirement contributions
• Other payroll deductions

Take-home pay depends on the employee's individual circumstances and payroll deductions.

For that reason, an hourly wage conversion should be used as a gross earnings estimate rather than a prediction of the exact amount deposited into a bank account.

How Many Hours Are in a Full-Time Work Year?

A common full-time schedule uses 40 hours per week and 52 weeks per year.

40 × 52 = 2,080 hours per year

This 2,080-hour figure is useful when comparing an annual salary with an hourly rate.

For example, a $52,000 annual salary divided by 2,080 hours gives:

$52,000 ÷ 2,080 = $25 per hour

Different work schedules produce different annual working hours. Paid leave, unpaid leave, holidays, and employer-specific schedules can change the actual number of hours worked.

Frequently Asked Questions

What is $15 an hour annually?

$15 per hour equals $31,200 per year when working 40 hours per week for 52 paid weeks.

What is $20 an hour annually?

$20 per hour equals $41,600 per year when working 40 hours per week for 52 paid weeks.

What is $25 an hour annually?

$25 per hour equals $52,000 per year when working 40 hours per week for 52 paid weeks.

What is $30 an hour annually?

$30 per hour equals $62,400 per year when working 40 hours per week for 52 paid weeks.

How do I calculate my annual salary from hourly pay?

Multiply your hourly rate by your weekly working hours and your paid weeks per year.

For example:

$25 × 40 × 52 = $52,000

How do I calculate my hourly rate from annual salary?

Divide your annual salary by your total annual working hours.

For a $52,000 salary and 2,080 annual working hours:

$52,000 ÷ 2,080 = $25 per hour

Does $25 an hour equal $52,000 a year?

Yes, $25 per hour equals $52,000 annually when working 40 hours per week for 52 paid weeks.

How much is $50 an hour per year?

$50 per hour equals $104,000 annually when working 40 hours per week for 52 paid weeks.

Summary

Converting hourly pay to annual salary requires the hourly rate, weekly working hours, and paid weeks per year.

Hourly rate × hours per week × weeks per year = annual salary

At 40 hours per week and 52 paid weeks, common conversions include:

• $20/hour → $41,600/year
• $25/hour → $52,000/year
• $30/hour → $62,400/year
• $50/hour → $104,000/year

These are gross salary estimates. Part-time hours, unpaid weeks, and overtime can change total annual earnings.

For a quick conversion, use the HR to Salary calculator.