To turn an hourly wage into a yearly salary, multiply it by 2,080 (40 hours a week × 52 weeks). So $20 an hour is $41,600 a year and $25 an hour is $52,000 before taxes. Quick mental math: double the hourly rate and add three zeros for a close estimate.
Job ads quote hourly rates, loan and apartment applications ask for annual income, and budgets run monthly. Here’s how to move between all of them, with a full chart for common wages and the rules that change the math.
The hourly to salary formula
Full-time = hourly rate × 40 × 52 = hourly rate × 2,080
Jordan works in a Dallas warehouse for $19.50 an hour, 40 hours a week. $19.50 × 2,080 = $40,560 a year. That’s $3,380 a month, $1,560 every two weeks, or $780 a week before taxes.
Hourly to salary chart
Full-time at 40 hours a week, 52 paid weeks a year, before taxes:
| Hourly | Yearly | Monthly | Biweekly | Weekly |
|---|---|---|---|---|
| $7.25 | $15,080 | $1,257 | $580 | $290 |
| $12 | $24,960 | $2,080 | $960 | $480 |
| $15 | $31,200 | $2,600 | $1,200 | $600 |
| $17 | $35,360 | $2,947 | $1,360 | $680 |
| $18 | $37,440 | $3,120 | $1,440 | $720 |
| $20 | $41,600 | $3,467 | $1,600 | $800 |
| $22 | $45,760 | $3,813 | $1,760 | $880 |
| $25 | $52,000 | $4,333 | $2,000 | $1,000 |
| $28 | $58,240 | $4,853 | $2,240 | $1,120 |
| $30 | $62,400 | $5,200 | $2,400 | $1,200 |
| $35 | $72,800 | $6,067 | $2,800 | $1,400 |
| $40 | $83,200 | $6,933 | $3,200 | $1,600 |
| $45 | $93,600 | $7,800 | $3,600 | $1,800 |
| $50 | $104,000 | $8,667 | $4,000 | $2,000 |
The federal minimum wage is $7.25 an hour, which works out to $15,080 a year full-time. Many states and cities set a higher minimum, so check your state’s rate.
Monthly, biweekly and weekly pay
- Monthly: annual ÷ 12. Don’t multiply weekly pay by 4, because a month averages about 4.33 weeks.
- Biweekly (every two weeks): annual ÷ 26, or hourly × 80. Two months a year contain three paydays.
- Semi-monthly (twice a month): annual ÷ 24.
- Weekly: hourly × hours per week.
Part-time hours and unpaid time off
Change the hours and weeks to match your job. At 30 hours a week, $18 an hour is $18 × 30 × 52 = $28,080. If you take two weeks off unpaid, use 50 weeks instead of 52: a full-time $25 wage becomes $25 × 40 × 50 = $50,000.
Adding overtime
Under the Fair Labor Standards Act, non-exempt employees must be paid at least 1.5 times their regular rate for hours over 40 in a workweek. Some states, such as California, also require daily overtime.
At $22 an hour, a 45-hour week pays 40 × $22 = $880, plus 5 × $33 = $165 of overtime, for $1,045 before taxes.
Track the hours themselves with our time card calculator, which totals each day and applies the overtime rate for you.
Converting a salary to an hourly rate
$50,000 ÷ 2,080 = $24.04 an hour. $75,000 ÷ 2,080 = $36.06. $100,000 ÷ 2,080 = $48.08. Federal agencies divide by 2,087 instead, because the average calendar year has slightly more than 2,080 working hours, so their hourly figures are a few cents lower.
Gross vs. take-home pay
Every number above is gross pay. Your paycheck is smaller after federal income tax, any state and local income tax, and FICA. FICA alone is 7.65% for most employees (6.2% Social Security plus 1.45% Medicare). Health insurance and 401(k) contributions come out too, so take-home pay is often 70% to 80% of gross.
Frequently asked questions
How do I convert hourly pay to an annual salary?
Multiply your hourly rate by 2,080, the number of hours in a full-time year (40 hours × 52 weeks). For example, $20 an hour × 2,080 = $41,600 a year before taxes.
How much is $25 an hour per year?
$52,000 a year for a 40-hour week with paid time off, which is about $4,333 a month or $2,000 every two weeks before taxes.
How do I convert a salary to an hourly rate?
Divide the annual salary by 2,080. A $60,000 salary works out to about $28.85 an hour.
Why do some employers use 2,087 hours instead of 2,080?
Because most calendar years have slightly more than 52 weeks of workdays. The U.S. Office of Personnel Management uses 2,087 hours, the long-run average, to convert federal salaries to hourly rates.
Does the annual figure include overtime and taxes?
No. The 2,080-hour figure is straight-time gross pay. Overtime adds to it, and federal, state and FICA taxes come out of it.
Sources
- Overtime Pay — U.S. Department of Labor, Wage and Hour Division
- Minimum Wage — U.S. Department of Labor
- 2087 Hour Divisor — U.S. Office of Personnel Management