How do I convert hourly wage to annual salary?

Multiply your hourly rate by 2,080 (40 hours/week × 52 weeks). For example: $30/hour × 2,080 = $62,400/year. For the reverse, divide your annual salary by 2,080. This assumes standard full-time hours.

How much more should I charge as a 1099 contractor vs. W-2 employee?

A 1099 contractor should charge roughly 20–30% more than an equivalent W-2 rate to account for: self-employment tax (15.3% vs. employee's 7.65%), no employer benefits (health insurance, 401k match), unpaid vacation, and business expenses. A $50/hour W-2 rate is roughly equivalent to a $62–$65/hour 1099 rate.

Does PTO affect my effective hourly rate?

Yes. If you're salaried with 15 days of PTO, you're effectively paid for more than 2,080 hours. Your 'true hourly rate' is your annual salary divided by the hours you actually work (excluding paid leave), which is lower than $salary ÷ 2,080. This makes PTO a meaningful part of total compensation.

What is a good hourly wage in 2026?

It depends heavily on your field, experience, and location. The federal minimum wage is $7.25, but many states and cities have higher minimums. Median full-time worker hourly wages in the US are around $25–$30/hour. Professional roles commonly range from $40–$100+/hour. Calculate your take-home pay for any rate using our converter to see what you'll actually bring home.

Hourly to Salary: How to Convert and Compare Job Offers

The Standard Conversion Formula

The quick conversion: hourly rate × 2,080 = annual salary equivalent. This is based on 40 hours per week × 52 weeks per year. A $25/hour job equals $52,000/year. A $50/hour rate equals $104,000. A $75/hour rate equals $156,000.

For the reverse conversion: annual salary ÷ 2,080 = hourly equivalent. An $80,000 salary works out to ~$38.46/hour; a $120,000 salary is ~$57.69/hour.

When the Formula Doesn't Apply

The 2,080-hour formula assumes full-time employment (40 hours/week, 52 weeks/year) with no unpaid time off. It breaks down when: you're paid for fewer than 52 weeks (seasonal work), your employer uses a standard 37.5-hour week (common in some sectors), or you regularly work more or fewer than 40 hours. Always clarify the expected hours when comparing offers.

Why Hourly vs. Salary Isn't Apples to Apples

Salaried positions typically include benefits that add 20–40% to total compensation: employer-paid health insurance premiums (worth $6,000–$20,000/year depending on plan and dependents), 401(k) employer match (often 3–6% of salary), paid time off (10–25 days), and paid holidays. An hourly contractor role at $35/hour with no benefits may actually be worth less total compensation than a salaried position at $65,000 with full benefits.

PTO math: A salaried job with 15 days of PTO and 10 holidays effectively means 25 paid non-working days per year. That's like getting paid for 5 additional weeks you don't work — roughly a 9.6% premium over an hourly role with no PTO at the same gross rate.

W-2 vs. 1099: The Tax Difference Matters

A W-2 employee and a 1099 independent contractor earning the same gross amount have very different after-tax outcomes. As a W-2 employee, your employer pays half of your FICA taxes (7.65%). As a 1099 contractor, you pay all 15.3% yourself as self-employment tax — plus you're responsible for your own health insurance and retirement savings with no employer match. A 1099 rate needs to be roughly 20–30% higher than a W-2 rate to be equivalent after accounting for self-employment tax, benefits, and the administrative burden of quarterly tax payments.

The After-Tax Comparison

The most honest comparison between job offers is after-tax, after-deduction take-home pay. Gross income is a starting point, not the answer. Two $80,000 offers in different states can yield $5,000–$8,000 different take-home amounts due to state income tax alone. Use our calculator to model the exact net pay for any combination of salary, state, and filing status before accepting an offer.

Part-Time Hourly to Annualized Salary

For part-time work, adjust the formula: hours per week × weeks per year = total hours, then multiply by hourly rate. A 20-hour/week job at $30/hour equals 20 × 52 × $30 = $31,200 annualized. However, part-time workers typically receive fewer or no benefits, so the total compensation comparison shifts further in favor of full-time roles.

This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws change frequently. Consult a qualified tax professional for advice specific to your situation.