Multiply your hourly rate by 2,080 to convert it to an annual salary — that is 40 hours per week times 52 weeks. To go the other direction, divide the annual salary by 2,080 to find the hourly equivalent. A worker earning $25 per hour makes $52,000 per year on a standard full-time schedule. A salary of $65,000 equals $31.25 per hour.
Use the hourly to salary calculator to estimate net take-home pay, not just the gross equivalent, based on your filing status and state.
The Standard Conversion Formula
For a 40-hour workweek over 52 weeks:
Hourly to annual: hourly rate × 40 × 52 = annual salary
Annual to hourly: annual salary ÷ 2,080 = hourly rate
The 2,080 figure is simply 40 × 52. It does not adjust for unpaid days, holidays, or vacation — those are paid time off under most full-time employment arrangements, so the gross pay remains.
Common Hourly Rates and Annual Equivalents
| Hourly Rate | Annual Salary (2,080 hrs) | Monthly (÷12) | Biweekly (÷26) |
|---|---|---|---|
| $15.00 | $31,200 | $2,600 | $1,200 |
| $20.00 | $41,600 | $3,467 | $1,600 |
| $25.00 | $52,000 | $4,333 | $2,000 |
| $30.00 | $62,400 | $5,200 | $2,400 |
| $35.00 | $72,800 | $6,067 | $2,800 |
| $40.00 | $83,200 | $6,933 | $3,200 |
| $50.00 | $104,000 | $8,667 | $4,000 |
Common Annual Salaries and Hourly Equivalents
| Annual Salary | Hourly (÷2,080) | Biweekly Gross (÷26) |
|---|---|---|
| $40,000 | $19.23 | $1,538 |
| $55,000 | $26.44 | $2,115 |
| $65,000 | $31.25 | $2,500 |
| $75,000 | $36.06 | $2,885 |
| $90,000 | $43.27 | $3,462 |
| $100,000 | $48.08 | $3,846 |
| $120,000 | $57.69 | $4,615 |
Worked Example: Job Offer Comparison
You have two offers: $28.50 per hour (hourly) and a $57,000 annual salary (salaried). Which pays more on a standard 40-hour week?
| Hourly Offer | Salary Offer | |
|---|---|---|
| Annual equivalent | $28.50 × 2,080 = $59,280 | $57,000 |
| Biweekly gross | $59,280 ÷ 26 = $2,280 | $57,000 ÷ 26 = $2,192 |
| Difference | +$2,280/year gross | — |
The hourly offer pays $2,280 more per year at straight time. However, the salary offer may include overtime-eligible pay only if you are classified as non-exempt. Salaried exempt employees generally do not receive additional pay for extra hours. An hourly employee who regularly works 45 hours per week has a meaningful advantage — each overtime hour is 1.5× the regular rate.
Part-Time Conversion
If your schedule is not 40 hours per week, adjust the multiplier:
| Weekly Hours | Annual Hours | $20/hr Annual |
|---|---|---|
| 20 | 1,040 | $20,800 |
| 25 | 1,300 | $26,000 |
| 30 | 1,560 | $31,200 |
| 35 | 1,820 | $36,400 |
| 40 | 2,080 | $41,600 |
Use your actual scheduled hours, not a rounded figure. Some salaried part-time positions specify hours in the offer letter; others do not.
Gross vs. Take-Home Pay
The converted annual figure is your gross pay — before any deductions. From gross, you subtract:
- Federal income tax (based on taxable income after the standard deduction and any pre-tax contributions)
- FICA: Social Security (6.2% up to $184,500) and Medicare (1.45%)
- State income tax (varies by state; nine states have no income tax on wages)
- Pre-tax benefits (health insurance, 401(k), HSA, FSA — these lower taxable income but reduce take-home pay dollar-for-dollar)
At $52,000 gross (from $25/hr), a single filer in a no-income-tax state would owe roughly $4,720 in federal income tax and $3,978 in FICA — leaving approximately $43,302 in annual take-home pay, or about $1,665 per biweekly paycheck. Use the hourly to salary calculator for your specific situation.
When the Formula Does Not Apply
Tipped workers: Hourly rates for tipped employees may be below the federal minimum wage if tips bring total compensation up to the minimum. The gross conversion formula still works — just use the actual hourly rate you receive plus expected tips.
Piece-rate and commission workers: Conversion is more complex because earnings vary. Calculate an annualized average based on historical pay periods rather than a single rate.
Contract or freelance work: A $50/hour contract rate is not equivalent to a $104,000 salary. The contractor pays self-employment tax (15.3% on 92.35% of net earnings), funds their own benefits, and may have periods of no work. A common rule of thumb is that contractors need roughly 1.4× to 1.5× a W-2 salary’s hourly equivalent to net the same income — but your exact situation will vary. See 1099 vs. W-2 take-home pay for a direct comparison.
For raise scenarios — for example, moving from $25/hr to $28/hr — see how to calculate a raise. For overtime calculations, see how overtime pay works.