How to Convert Hourly Rate to Annual Salary
Whether you're comparing job offers, budgeting, or negotiating pay, knowing how to convert an hourly rate to an annual salary is an essential skill. The math is simple — and this guide walks you through it step by step.
The Basic Formula
The standard conversion assumes a 40-hour work week and 52 weeks per year:
For a full-time employee: Annual = Hourly Rate × 2,080 (because 40 × 52 = 2,080 total hours/year).
Step-by-Step Examples
Example 1: $20/hour full-time
- Annual: $20 × 40 × 52 = $41,600
- Monthly: $41,600 ÷ 12 = $3,466.67
- Bi-weekly: $20 × 80 = $1,600
- Weekly: $20 × 40 = $800
- Daily: $20 × 8 = $160
Example 2: $15/hour part-time (30 hrs/week)
- Annual: $15 × 30 × 52 = $23,400
- Monthly: $23,400 ÷ 12 = $1,950
Quick Reference Table
| Hourly | Annual (40hr/wk) | Monthly | Weekly |
|---|---|---|---|
| $12 | $24,960 | $2,080 | $480 |
| $15 | $31,200 | $2,600 | $600 |
| $17 | $35,360 | $2,947 | $680 |
| $20 | $41,600 | $3,467 | $800 |
| $25 | $52,000 | $4,333 | $1,000 |
| $30 | $62,400 | $5,200 | $1,200 |
| $50 | $104,000 | $8,667 | $2,000 |
What About Taxes?
These figures are gross pay — before taxes. Your actual take-home pay will be lower after federal income tax (10–37%), state income tax (0–13%), Social Security (6.2%), and Medicare (1.45%).
For a rough estimate: most workers take home 65–75% of gross pay. So $20/hour gross ≈ $27,000–$31,000 take-home annually.
Use our Salary After Tax Calculator or Paycheck Calculator for an accurate net pay estimate.
Reverse: Converting Salary to Hourly
Want to go the other way? Divide your annual salary by 2,080 (full-time hours):
Example: $65,000 ÷ 2,080 = $31.25/hour
This is useful when comparing salaried positions against hourly job offers.