Hourly to Salary: How to Convert Your Pay
The formula is: Hourly Rate x 40 hours x 52 weeks = Annual Salary. At $25 per hour, that is $25 x 40 x 52 = $52,000 per year. The magic number to remember is 2,080. That is the total work hours in a standard year (40 hours x 52 weeks).
Quick reference table
| Hourly rate | Annual salary | Monthly (est.) | Biweekly (est.) |
|---|---|---|---|
| $12.00 | $24,960 | $2,080 | $960 |
| $15.00 | $31,200 | $2,600 | $1,200 |
| $18.00 | $37,440 | $3,120 | $1,440 |
| $20.00 | $41,600 | $3,467 | $1,600 |
| $22.00 | $45,760 | $3,813 | $1,760 |
| $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 |
Monthly estimates use annual salary divided by 12. Biweekly estimates use hourly rate x 80 (two 40-hour weeks).
Converting salary to hourly
To go the other direction, divide the annual salary by 2,080.
Example: A $65,000 salary converts to $65,000 / 2,080 = $31.25 per hour.
Example: A $48,000 salary converts to $48,000 / 2,080 = $23.08 per hour.
This is useful when comparing a salaried position to an hourly one. Just remember that salaried positions often include benefits (health insurance, retirement matching, paid time off) that have real monetary value and do not show up in the hourly number.
A quick mental math shortcut
To roughly estimate annual salary from an hourly rate, double the hourly rate and multiply by 1,000.
$25/hour: $25 x 2 = 50, x 1,000 = $50,000. The actual figure is $52,000, so this shortcut gets you within about 4%. It works because 2,080 is close to 2,000.
Going the other way, divide the salary by 2,000. A $70,000 salary is roughly $70,000 / 2,000 = $35/hour. The exact answer is $33.65, so it is a bit less precise in this direction but still gives a fast ballpark.
Adjusting for part-time or non-standard hours
The 2,080-hour figure assumes 40 hours per week, 52 weeks per year. If your schedule is different, adjust accordingly.
Part-time (30 hours/week): $25 x 30 x 52 = $39,000 per year. That is 1,560 hours.
Part-time (20 hours/week): $25 x 20 x 52 = $26,000 per year. That is 1,040 hours.
Four 10-hour days (still 40 hours): The annual salary stays the same at $52,000. The schedule changes but total hours do not.
For non-standard weeks, use the formula directly: Hourly Rate x Weekly Hours x 52 = Annual.
Accounting for paid time off
Salaried workers typically receive paid vacation, sick days, and holidays. An hourly worker who does not receive paid time off actually works fewer than 52 weeks per year if they take any time off.
If an hourly worker takes 2 weeks of unpaid vacation, the real annual calculation is:
$25 x 40 x 50 = $50,000 (not $52,000)
That is a $2,000 difference. If you are comparing two job offers, account for paid time off. A $52,000 salary with 3 weeks paid vacation is effectively worth more than $27/hour with no PTO, even though $27 x 2,080 = $56,160 on paper.
Overtime changes the math
Federal law requires overtime pay of at least 1.5x the regular rate for hours above 40 per week (for non-exempt employees).
If you earn $25/hour and work 50 hours in a week:
- Regular pay: 40 hours x $25 = $1,000
- Overtime pay: 10 hours x $37.50 = $375
- Weekly total: $1,375
If you work 50-hour weeks year-round: $1,375 x 52 = $71,500. That is $19,500 more than the base $52,000 annual salary. Overtime can significantly change the hourly-to-salary picture.
Key takeaways
- Annual Salary = Hourly Rate x 2,080 (for a standard 40-hour week)
- Hourly Rate = Annual Salary / 2,080
- Quick estimate: double the hourly rate and add three zeros
- Adjust for part-time by using actual weekly hours instead of 40
- Account for paid time off when comparing hourly and salaried positions
- Overtime at 1.5x can significantly increase annual earnings above the base calculation
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