Hourly to Salary Converter

How to Convert an Hourly Wage to Annual Salary?

Multiply the hourly rate by the number of hours worked per week, then multiply by 52 weeks. A standard full-time schedule of 40 hours per week produces a multiplier of 2,080 annual hours. Enter your hourly rate and weekly hours in the calculator above to see your equivalent daily, weekly, biweekly, monthly, and annual income. The results help translate between job offers quoted in different formats and clarify your true earning power across various timeframes.

Quick Reference: Common Hourly Rates to Annual Salary

At 40 hours per week: $15/hour = $31,200. $20/hour = $41,600. $25/hour = $52,000. $30/hour = $62,400. $35/hour = $72,800. $40/hour = $83,200. $50/hour = $104,000. $75/hour = $156,000. $100/hour = $208,000. Quick mental math: double the hourly rate and add three zeros for a close approximation. $25 becomes $50,000 (actual: $52,000). This shortcut works because 2,080 annual hours is close to 2,000. The $2,000 difference matters most at higher hourly rates.

Part-Time and Variable Hours: Adjusting the Calculation

Part-time workers should use their actual weekly hours, not 40. A $20/hour job at 25 hours/week: $20 x 25 x 52 = $26,000, not the $41,600 that the standard conversion would suggest. Seasonal workers and those with variable schedules should use average weekly hours across the entire year. A landscaper working 50 hours/week for 7 months and 20 hours/week for 5 months averages approximately 37.5 hours/week, changing the annual income calculation accordingly. Freelancers should also subtract unbillable hours (marketing, admin, invoicing) to find the effective hourly rate.

Paid Time Off and Its Effect on True Hourly Rate

The standard 2,080-hour calculation assumes 52 working weeks. If you receive 2 weeks of paid vacation and 10 paid holidays, your actual working hours drop to about 1,920, but your pay stays the same. This effectively raises your true hourly rate. A $52,000 salary with 4 weeks total paid time off means 1,920 actual working hours and a true rate of $27.08/hour, not $25.00. Conversely, an hourly worker without paid time off taking 2 weeks unpaid vacation earns for only 50 weeks: $25 x 40 x 50 = $50,000, not $52,000. Benefits like PTO add real value that does not appear in the hourly rate.

Overtime and Its Impact on Annual Earnings

Non-exempt hourly workers earn 1.5x their regular rate for hours exceeding 40 per week under the Fair Labor Standards Act. A $25/hour worker averaging 10 hours of overtime weekly: regular pay $52,000 + overtime $37.50 x 10 x 52 = $19,500. Total annual: $71,500. That 25% increase in hours (50 vs 40) produced a 37.5% increase in pay because of the overtime premium. Some industries (healthcare, oil and gas, construction) routinely offer overtime, making the effective annual salary substantially higher than the base hourly rate suggests. Always factor typical overtime into compensation comparisons.

Comparing Hourly Jobs to Salaried Positions

A $25/hour job ($52,000 annual) and a $55,000 salaried position appear close in pay, but the comparison requires examining total compensation. The salaried role may include employer-paid health insurance ($5,000-$15,000 value), retirement match ($2,000-$4,000), paid vacation (worth $2,000-$4,000 in foregone hourly pay), and other benefits. The hourly role may offer overtime potential but require purchasing individual health insurance ($300-$600/month). A salaried position at $55,000 with full benefits often delivers $65,000-$75,000 in total compensation value, while a $25/hour job without benefits delivers only $52,000.

Federal and State Minimum Wage Rates

The federal minimum wage is $7.25/hour ($15,080/year at 40 hours), unchanged since 2009. Over 30 states have set higher minimums. California: $16.00 ($33,280). Washington: $16.28 ($33,862). New York: $15.00-$16.00 depending on location. Florida: $13.00 rising to $15.00 by 2026. Several cities set rates above state minimums: Seattle ($19.97), San Francisco ($18.67), Denver ($18.29). Tipped employees have a federal minimum of $2.13/hour with tips expected to reach the full minimum. Some states require the full minimum wage before tips (California, Washington, Oregon, Minnesota), significantly affecting server and bartender earnings.

Contract and Freelance Rate Calculations

Freelancers and independent contractors pay both the employee and employer portions of Social Security and Medicare (15.3% combined self-employment tax) and receive no employer-paid benefits. To match a $52,000 salaried position with benefits, a freelancer typically needs to charge $35-$45/hour. The formula: desired salary / (1 - self-employment tax rate - benefit costs - unbillable time ratio) / billable hours. At 30 billable hours per week (accounting for admin, marketing, and downtime): $52,000 / 0.70 / 1,560 billable hours = $47.62/hour minimum. This is why experienced freelancers charge rates that appear high compared to employment - they must cover costs that employers normally absorb.

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