Hourly to Annual Salary: How to Convert & Compare Pay
The Basic Formula
Converting an hourly wage to an annual salary is straightforward if you work a standard 40-hour week:
Annual Salary = Hourly Rate × 40 hours/week × 52 weeks/year
Annual Salary = Hourly Rate × 2,080For example, if you earn $25/hour:
$25 × 2,080 = $52,000/yearTo convert the other way — from annual salary to hourly rate:
Hourly Rate = Annual Salary ÷ 2,080A $65,000 salary works out to:
$65,000 ÷ 2,080 = $31.25/hourQuick Reference: Common Hourly Rates Converted to Annual
| Hourly Rate | Annual (2,080 hours) | Monthly Gross |
|---|---|---|
| $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 |
Calculate Your Salary Instantly
Use our free Salary Calculator to convert between hourly, weekly, monthly, and annual pay — and see how taxes affect your take-home.
Salary Calculator →Adjusting for Non-Standard Hours
Not everyone works exactly 40 hours per week. Use the actual hours in your calculation:
Annual = Hourly Rate × Hours per Week × 52Part-time at 25 hours/week at $22/hour:
$22 × 25 × 52 = $28,600/yearWhat the Formula Misses
Paid Time Off
If your job includes 2 weeks of paid vacation, you are still paid for 2,080 hours per year even though you only work 2,040. The formula already accounts for this because you are paid for, not necessarily working, 52 × 40 hours.
Overtime
Hourly workers often earn 1.5× their rate for hours over 40 per week. Salaried employees typically do not receive overtime pay — an important difference when comparing job offers.
Benefits
A salaried job at $60,000 with employer-provided health insurance, retirement matching, and paid time off can be worth significantly more than a $65,000 hourly contract with no benefits. Always compare total compensation, not just the base number.
Comparing a Salary Offer to Your Current Hourly Rate
If you are currently paid hourly and receive a salaried offer, this is the critical comparison to make:
- Convert the salary offer to an hourly rate:
Salary ÷ 2,080 - Compare to your current hourly rate
- Add the value of any benefits included in the salaried role
- Consider whether overtime earnings would be lost under a salary structure
Conclusion
The 2,080-hour rule makes hourly-to-salary conversions simple, but real-world comparisons require looking at the full picture: overtime, benefits, paid leave, and tax treatment. Use our Salary Calculator to do the math across multiple scenarios and make a fully informed compensation decision.