Hourly to Salary Calculator

How to Convert Hourly Wage to Salary

Converting your hourly wage to an annual salary is straightforward using a simple formula:

Annual Salary = Hourly Rate × Hours per Week × Weeks per Year

For example, if you earn $25 per hour, work 40 hours per week, and work 52 weeks per year, your annual salary would be:

$25 × 40 × 52 = $52,000

The standard assumption is 40 hours per week and 52 weeks per year (2,080 total hours annually), which represents a full-time position with no unpaid time off. However, many employees have paid vacation, sick days, or holidays, which means their actual working hours may be closer to 2,000 or 1,920 hours per year.

Why 2,080 Hours Is the Standard Annual Work Year

The 2,080-hour standard comes from the standard 40-hour work week multiplied by 52 weeks in a year. This number is used by the U.S. Department of Labor and is the basis for overtime calculations under the Fair Labor Standards Act (FLSA). However, this doesn't account for paid time off, holidays, or other breaks in the work year.

If you want a more accurate picture of your take-home pay, consider adjusting the weeks per year downward to account for vacation days. For example, if you get 2 weeks of unpaid vacation, use 50 weeks instead of 52.

Hourly vs. Salary: Key Differences

Overtime Eligibility: Hourly employees are typically covered by the Fair Labor Standards Act (FLSA) and are eligible for overtime pay (1.5x or 2x their regular rate) when working more than 40 hours per week. Salaried employees are often classified as exempt and do not receive overtime pay, even if they work significantly more than 40 hours per week.

Pay Consistency: Hourly employees' paychecks vary based on hours worked. Salaried employees receive consistent paychecks regardless of hours worked (within reason), making budgeting more predictable.

Benefits: Salaried positions often come with more comprehensive benefits packages, including health insurance, retirement plans (401k), paid time off, and other perks. Hourly positions may have more limited benefits, though this varies by employer.

Job Security: Salaried employees may have more job security, though this is not guaranteed. Hourly employees can often be laid off with less notice, and their hours may fluctuate based on business needs.

Common Hourly to Annual Salary Conversions

Here are some quick reference conversions at a glance (based on 40 hrs/week, 52 weeks/year):

• $15/hr = $31,200/year
• $20/hr = $41,600/year
• $25/hr = $52,000/year
• $30/hr = $62,400/year
• $35/hr = $72,800/year
• $40/hr = $83,200/year
• $50/hr = $104,000/year
• $60/hr = $124,800/year
• $75/hr = $156,000/year
• $100/hr = $208,000/year