💵 Hourly to Salary Converter

Converting between hourly and annual pay

The standard full-time assumption in the United States is 40 hours per week across 52 weeks — 2,080 hours per year. Multiply an hourly rate by 2,080 for a rough annual figure, or divide a salary by 2,080 to go the other way.

Annual = hourly × hours per week × weeks per year

The shortcut worth memorising: double the hourly rate and add three zeros. $25 an hour is roughly $50,000 a year. It is accurate to within about four percent, which is close enough for a first comparison.

Why the two are not really equivalent

Hourly and salaried roles differ in more than payment mechanics.

Paid time off. A salaried worker taking two weeks of holiday still receives the full annual figure. An hourly worker without paid leave earns nothing those weeks — the same nominal rate produces about four percent less.

Overtime. Non-exempt hourly workers are typically entitled to premium pay beyond 40 hours per week. Many salaried roles are exempt, meaning additional hours are unpaid. A salary that looks generous at 40 hours can look poor at 55.

Benefits. Employer contributions to health insurance, retirement matching, and payroll taxes can add 20 to 30 percent on top of the headline figure, and are often less generous or absent for part-time hourly roles.

Comparing two offers properly

Convert everything to an annual total cost of employment, then adjust for hours actually worked. A $70,000 salary at 50 hours a week is $26.90 an hour; a $60,000 salary at 40 hours is $28.85. The lower headline number pays better per hour.

Then layer on the things that do not appear in either number: commute cost and time, remote flexibility, the value of the benefits package, and how much of the total is guaranteed versus dependent on a bonus that may not arrive. Gross pay is only the starting point of the comparison, never the end of it.

Common questions

Why does 2,080 hours ignore public holidays?

Because salaried pay usually continues through them. For an hourly worker without paid holidays, subtracting the unpaid days gives a more realistic annual figure.

How do I handle biweekly pay?

Twenty-six pay periods per year, not 24. Two months each year contain three paycheques, which is why annual figures divided by 24 come out too high.

Is the result before or after tax?

Before. Income tax, payroll tax, and any benefit deductions all come out of this figure, and the amounts depend on where you live and your personal circumstances.