$25 per hour × 40 hours per week × 52 weeks = $52,000 estimated gross annual salary.
The hourly-to-salary formula
To convert an hourly wage to an estimated annual salary, multiply the hourly rate by the number of hours worked per week and the number of paid or worked weeks you want to include. Annual salary estimate = hourly rate × weekly hours × weeks per year.
A common planning assumption is 40 hours per week for 52 weeks, which equals 2,080 scheduled hours. That is an assumption, not a guarantee that every worker is paid for exactly 2,080 hours.
Example: $25 an hour to annual salary
At $25 per hour, 40 hours per week, and 52 weeks, the estimate is $52,000 per year before taxes, deductions, overtime, bonuses, or unpaid time. The calculation is $25 × 40 × 52 = $52,000.
If the worker is paid for fewer weeks, use that number instead. At the same hourly rate and schedule for 50 paid weeks, the estimate becomes $50,000.
Hourly-to-salary reference table
The table below uses 40 hours per week and 52 weeks per year. It is a gross-pay reference and does not estimate take-home pay.
| Hourly rate | Weekly gross | Annual estimate |
|---|---|---|
| $15 | $600 | $31,200 |
| $20 | $800 | $41,600 |
| $25 | $1,000 | $52,000 |
| $30 | $1,200 | $62,400 |
| $40 | $1,600 | $83,200 |
| $50 | $2,000 | $104,000 |
How part-time hours change the result
The same hourly rate can produce a very different annual amount when weekly hours change. At $25 per hour, 30 hours per week, and 52 weeks, the estimate is $39,000. At 20 hours per week, it is $26,000.
Use the actual weekly schedule when it is known. If weekly hours vary, an average based on a representative period may be more useful than assuming 40 hours.
What if you have unpaid time off?
If the hourly worker is not paid for time away from work, reduce the weeks or hours in the formula. For example, $25 per hour × 40 hours × 50 weeks gives $50,000 instead of the $52,000 result produced by 52 weeks.
Paid holidays, PTO, unpaid leave, irregular schedules, and seasonal work can all change the annual amount. Keep the assumption visible instead of treating 2,080 hours as universal.
What about overtime, bonuses, and different pay rates?
A basic hourly-to-salary conversion uses straight-time hourly pay. Overtime, shift differentials, commissions, tips, bonuses, or multiple hourly rates can make actual annual earnings higher or lower than the simple estimate.
If overtime is part of the scenario, calculate the straight-time amount separately and then add the overtime estimate. The Overtime Pay Calculator can help with that arithmetic.
Gross annual salary is not take-home pay
The conversion estimates gross earnings before taxes and other deductions. Take-home pay depends on deductions and withholding, so it should not be inferred from the annual gross figure alone.
For the difference between these terms, see Gross Pay vs Net Pay. If you want the reverse conversion, use the Salary to Hourly Calculator.
Use the Hourly to Salary Calculator
The Hourly to Salary Calculator lets you change the hourly rate, weekly hours, and weeks per year without redoing the formula manually. It is useful for comparing full-time, part-time, and reduced-week scenarios.
For context on why 2,080 hours is often used as a planning baseline, see How Many Work Hours Are in a Year?
Continue with a calculation