How to convert hourly pay to a yearly salary
An hourly wage and an annual salary describe the same income in different units. Converting between them helps you compare job offers, budget a monthly paycheck, and see whether overtime or unpaid time off changes the picture.
The formula
Annual pay = Weekly pay × (52 − Unpaid weeks off)
Monthly pay = Annual pay ÷ 12 | Biweekly = Annual ÷ 26 | Daily = Weekly ÷ Work days
Step-by-step example
Scenario: $25 an hour, 40 hours a week, 52 paid weeks.
- Weekly pay: $25 × 40 = $1,000.
- Annual pay: $1,000 × 52 = $52,000.
- Monthly pay: $52,000 ÷ 12 = $4,333. Biweekly: $52,000 ÷ 26 = $2,000.
- Add 5 overtime hours a week at 1.5×: 5 × $25 × 1.5 = $187.50 more per week, or $9,750 more per year.
- Take two unpaid weeks off and the base $52,000 falls to $50,000.
Common hourly-to-salary reference points
- $15/hour ≈ $31,200 per year at 40 hours a week.
- $30/hour ≈ $62,400 per year.
- $50/hour ≈ $104,000 per year.
Remember that salaried roles often include benefits such as paid time off, health insurance and retirement matching. Put a dollar value on those perks when comparing an hourly offer to a salaried one.
Frequently asked questions
Multiply your hourly rate by the hours you work each week, then by the number of weeks you work per year. For example, $25 × 40 hours × 52 weeks = $52,000. Subtract any unpaid time off for a more realistic figure.
At 40 hours a week for 52 weeks, $20 an hour is $41,600 per year, about $3,467 per month before taxes. Overtime or unpaid vacation will move that number up or down.
In the U.S., non-exempt employees generally earn at least 1.5 times their regular rate for hours over 40 in a workweek. Enter your weekly overtime hours and multiplier and the calculator adds them into your annual total.
Paid time off is already part of your yearly pay, so leave "unpaid weeks off" at 0. Only enter weeks off for which you are not paid, such as unpaid leave or gaps between contracts.
No. It applies a single flat tax percentage you choose. For a detailed estimate with federal brackets, FICA and state tax, use our Paycheck Calculator.
Disclaimer: this calculator provides estimates for educational purposes only and is not financial, tax or legal advice. Consult a qualified professional before making financial decisions.