Hourly to Salary Calculator
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Daily
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Weekly
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Annual Salary
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How Hourly to Salary Conversion Works
An hourly to salary conversion is the process of calculating annual income from an hourly wage rate, working hours, and weeks worked per year. According to the U.S. Bureau of Labor Statistics (BLS), approximately 55.6% of all US workers age 16 and older are paid hourly wages rather than salaries, making this conversion essential for financial planning, job comparisons, and benefits eligibility assessment. The standard full-time schedule in the United States is 40 hours per week for 52 weeks per year, totaling 2,080 work hours annually. Understanding your annualized pay helps with budgeting, qualifying for loans, and evaluating whether a salaried position offers equivalent or better compensation than an hourly role.
The Hourly to Salary Formula
The conversion formula is straightforward and used universally in payroll and human resources:
Annual Salary = Hourly Rate x Hours per Week x Weeks per Year
- Hourly Rate — your base pay per hour before taxes and deductions
- Hours per Week — total scheduled hours (standard full-time is 40 hours)
- Weeks per Year — typically 52, reduced if you have unpaid time off
Worked example: At $25/hour, working 40 hours per week for 52 weeks: $25 x 40 x 52 = $52,000/year. Monthly = $52,000 / 12 = $4,333. Bi-weekly = $52,000 / 26 = $2,000. Weekly = $25 x 40 = $1,000. Daily (5-day week) = $200. If you take 2 weeks unpaid leave, use 50 weeks: $25 x 40 x 50 = $50,000.
Key Wage and Salary Terms
- Gross Pay — total earnings before taxes, insurance, retirement contributions, and other deductions. This is what the hourly-to-salary formula calculates.
- Net Pay (Take-Home Pay) — the amount deposited into your bank account after all deductions. Typically 65-80% of gross pay depending on tax bracket and benefits. Use our paycheck calculator to estimate net pay.
- Overtime — under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid 1.5x their regular rate for hours exceeding 40 per week.
- Exempt vs. Non-Exempt — exempt employees (salaried, meeting salary and duties tests) are not entitled to overtime. The 2024 FLSA salary threshold for exemption is $43,888/year ($844/week).
- Federal Minimum Wage — $7.25/hour since 2009, though 30 states and many cities set higher minimums. At 40 hours/52 weeks, federal minimum wage equals $15,080/year.
Hourly Wage to Annual Salary Quick Reference
The table below shows annual salary equivalents for common hourly rates at 40 hours/week for 52 weeks, based on standard US full-time employment per the Bureau of Labor Statistics.
| Hourly Rate | Weekly | Bi-Weekly | Monthly | Annual |
|---|---|---|---|---|
| $10.00 | $400 | $800 | $1,733 | $20,800 |
| $15.00 | $600 | $1,200 | $2,600 | $31,200 |
| $20.00 | $800 | $1,600 | $3,467 | $41,600 |
| $25.00 | $1,000 | $2,000 | $4,333 | $52,000 |
| $30.00 | $1,200 | $2,400 | $5,200 | $62,400 |
| $40.00 | $1,600 | $3,200 | $6,933 | $83,200 |
| $50.00 | $2,000 | $4,000 | $8,667 | $104,000 |
Practical Hourly to Salary Examples
Example 1 — Job comparison: Alex receives two job offers: Position A pays $28/hour for 40 hours/week, and Position B offers a $55,000 annual salary. Position A annualized: $28 x 40 x 52 = $58,240. Position A pays $3,240 more annually, but Alex should also compare benefits. If Position B includes 3 weeks paid vacation and employer-paid health insurance worth $6,000/year, the total compensation for B is $55,000 + $6,000 = $61,000, making it the better offer. Use our salary calculator for detailed breakdowns.
Example 2 — Part-time worker: Sarah works 25 hours per week at $18/hour year-round. Annual income: $18 x 25 x 52 = $23,400. Monthly: $1,950. She wants to know if she qualifies for certain tax credits, which require her annual income to be below specific thresholds.
Example 3 — Overtime impact: Mike earns $22/hour and averages 45 hours per week (5 hours overtime at 1.5x). Regular pay: $22 x 40 = $880/week. Overtime pay: $33 x 5 = $165/week. Total weekly: $1,045. Annual with overtime: $1,045 x 52 = $54,340, compared to $45,760 without overtime. That is $8,580 more per year. Use our overtime calculator for detailed scenarios.
Tips for Evaluating Hourly vs. Salary Positions
- Calculate total compensation, not just base pay: Include the value of health insurance ($5,000-$20,000/year for employer-paid premiums), retirement contributions (typically 3-6% employer match), paid time off (each PTO day is worth your daily rate), and other benefits.
- Factor in unpaid time off: If your hourly job offers no paid vacation, reduce weeks from 52. Two weeks unpaid leave at $25/hour costs $2,000 in lost income compared to a salaried position with paid vacation.
- Consider overtime earning potential: Hourly workers can earn 1.5x for overtime. If your job regularly offers overtime, your effective annual income can be 10-20% higher than the base calculation. Salaried exempt employees receive no overtime pay regardless of hours worked.
- Check the FLSA salary threshold: As of 2024, salaried workers earning below $43,888/year ($844/week) must be classified as non-exempt and are entitled to overtime pay. This threshold may increase in future DOL rulemaking.
- Account for taxes at different brackets: A $20/hour job ($41,600 annual) and a $30/hour job ($62,400 annual) are not just $20,800 apart after taxes, because the higher earner pays a higher marginal tax rate. Use our income tax calculator to compare after-tax income.
2026 Minimum Wage and Wage Statistics
The federal minimum wage remains $7.25/hour (unchanged since 2009), equaling $15,080/year at full-time hours. However, according to the Department of Labor, 30 states plus DC have set higher minimums. Washington state leads at $16.66/hour ($34,653/year), followed by California at $16.00/hour ($33,280/year). The BLS reports that the median hourly wage for all US workers was approximately $23.25 in 2025, equivalent to $48,360 annually. The 25th percentile earns about $15.75/hour ($32,760), while the 75th percentile earns about $36.00/hour ($74,880).
Frequently Asked Questions
How do you convert hourly pay to annual salary?
Multiply your hourly rate by the number of hours you work per week, then multiply by 52 weeks per year. For a standard full-time schedule, the formula is Annual Salary = Hourly Rate x 40 x 52. For example, $25/hour x 40 hours x 52 weeks = $52,000 per year. If you work part-time or have unpaid leave, adjust accordingly: a worker earning $25/hour for 30 hours per week for 50 weeks earns $25 x 30 x 50 = $37,500. The 2,080 total annual hours (40 x 52) is the standard used by the Bureau of Labor Statistics for full-time employment calculations.
Does this calculation include overtime pay?
This calculator uses your base hourly rate for a standard schedule and does not include overtime. Under the Fair Labor Standards Act, non-exempt employees must be paid at least 1.5 times their regular rate for hours exceeding 40 per week. If you regularly work overtime, your actual annual income will be higher than the base calculation. For example, working 45 hours/week at $20/hour: base pay ($800/week) plus overtime (5 hours x $30 = $150/week) = $950/week, or $49,400/year versus $41,600 without overtime. Use our overtime calculator for detailed estimates.
How do I account for unpaid time off?
Reduce the weeks per year field from 52 to reflect your actual paid working weeks. If you take 2 weeks of unpaid vacation, use 50 weeks. If you have 1 week unpaid sick leave and 1 week unpaid vacation, use 50 weeks. For example, $25/hour x 40 hours x 50 weeks = $50,000 instead of $52,000. Note that salaried employees with paid time off earn the same annual salary regardless of vacation days taken, which is a significant advantage when comparing hourly versus salaried positions. The average US worker receives 11 paid vacation days per year according to the BLS.
What is the annual salary for $20 an hour?
At $20 per hour working 40 hours per week for 52 weeks, the annual gross salary is $41,600. Monthly income is approximately $3,467, bi-weekly is $1,600, and weekly is $800. After federal and state taxes (varying by location and filing status), take-home pay is typically 70-80% of gross, meaning approximately $29,120 to $33,280 in net annual income. In 2025, $20/hour placed a worker slightly below the national median hourly wage of $23.25. Use our income tax calculator for a precise after-tax estimate.
How do I compare an hourly job to a salaried position?
First convert the hourly wage to annual salary using this calculator. Then add the monetary value of benefits for each position: employer-paid health insurance (worth $5,000-$20,000/year), retirement matching (3-6% of salary), paid time off (each day equals your daily rate), and other perks like tuition reimbursement or commuting subsidies. A salaried position at $55,000 with $12,000 in benefits has total compensation of $67,000, which may exceed an hourly job paying $30/hour ($62,400) with no benefits. Also consider that hourly workers can earn overtime pay, while salaried exempt employees cannot.
What is the current federal minimum wage as an annual salary?
The federal minimum wage is $7.25 per hour, which equals $15,080 per year at full-time hours (40 hours x 52 weeks). This has not changed since July 2009. However, 30 states and the District of Columbia have enacted higher minimum wages. Washington state leads at $16.66/hour ($34,653/year), followed by California at $16.00/hour ($33,280/year). Several major cities set even higher minimums: Seattle requires $19.97/hour for large employers. The DOL reports that approximately 1.1 million workers earned exactly the federal minimum wage or below in 2024, representing about 1.3% of all hourly workers.