How to Convert Hourly to Salary
Formula: Annual Salary = Hourly Rate x Hours Per Week x 52
Converting your hourly wage to an annual salary is simple. Multiply your hourly rate by the number of hours you work per week, then multiply by 52 (the number of weeks in a year). This gives you your gross annual salary before taxes and deductions.
Example: $25/hr x 40 hrs x 52 weeks = $52,000/year
This formula assumes you work full-time (40 hours per week) for all 52 weeks of the year, with no unpaid time off. If you take unpaid vacation, adjust the weeks accordingly (e.g., 50 weeks instead of 52).
Quick Reference Table
| Hourly Rate | Annual (40hr/wk) | Monthly | Weekly |
|---|---|---|---|
| $15/hr | $31,200 | $2,600 | $600 |
| $20/hr | $41,600 | $3,467 | $800 |
| $25/hr | $52,000 | $4,333 | $1,000 |
| $30/hr | $62,400 | $5,200 | $1,200 |
| $35/hr | $72,800 | $6,067 | $1,400 |
| $40/hr | $83,200 | $6,933 | $1,600 |
| $50/hr | $104,000 | $8,667 | $2,000 |
| $60/hr | $124,800 | $10,400 | $2,400 |
Common Work Schedules
Not everyone works a standard 40-hour week. Here are common schedules and how they affect your annual salary:
- Full-time (40 hrs/wk): 40 x 52 = 2,080 hours/year. This is the standard for most salaried positions.
- Part-time (20 hrs/wk): 20 x 52 = 1,040 hours/year. Common for students and retirees.
- Full-time with 2 weeks unpaid: 40 x 50 = 2,000 hours/year. Subtract unpaid weeks from total.
- Overtime schedule (50 hrs/wk): Regular: 40 x 52 = 2,080 hrs. Overtime: 10 x 52 = 520 hrs at 1.5x rate.
Hourly vs. Salary: Key Differences
Understanding the difference between hourly and salaried positions helps you make better career decisions:
- Hourly workers are paid for each hour worked. Overtime (over 40 hrs/week) must be paid at 1.5x the regular rate under federal law (FLSA).
- Salaried workers receive a fixed annual amount regardless of hours worked. They may be exempt from overtime requirements if they earn over $684/week ($35,568/year).
- Benefits: Salaried positions typically include health insurance, 401(k) matching, paid time off, and other benefits that can add 20-40% to your total compensation.
How to Calculate Your Hourly Rate from Salary
To reverse the calculation and find your hourly rate from an annual salary:
Hourly Rate = Annual Salary / (Hours Per Week x 52)
Example: $60,000 / (40 x 52) = $60,000 / 2,080 = $28.85/hour
Don't Forget About Taxes
Your gross salary (before taxes) is different from your take-home pay. Federal income tax, state tax, Social Security (6.2%), and Medicare (1.45%) will reduce your actual paycheck. Use our Paycheck Calculator to estimate your net pay after deductions.
Is Your Hourly Rate Competitive?
Compare your hourly rate to industry averages to see if you are being paid fairly:
- National average (US): $29.81/hr (May 2025, BLS data)
- Technology: $45-65/hr
- Healthcare: $30-55/hr
- Finance: $35-60/hr
- Retail: $14-20/hr
- Food Service: $13-18/hr
If your rate is below average for your industry and experience level, consider using our Pay Raise Calculator to plan your next salary negotiation.