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How to Convert an Hourly Wage to an Annual Salary

Published 2/11/2026 · 3 min read · Finance calculators

Camille Laurent

Camille LaurentFinance writer at Allin

Tax · Personal finance

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In short

Multiply your hourly rate by the hours you work per week, then by the number of weeks you work per year. Full-time in the US is usually taken as 40 hours × 52 weeks = 2,080 hours, so $25/hour equals $52,000 gross per year. That figure is gross pay before taxes; your take-home (net) pay is lower once income tax and payroll deductions come out.

Turn an hourly rate into a yearly salary: multiply rate by hours per week by weeks worked. See the full-time math, gross vs. net, and worked examples.

The core formula

Annual salary equals hourly rate multiplied by hours per week multiplied by weeks per year. The only judgment calls are how many hours you actually work each week and how many weeks you're paid for. Everything else is arithmetic.

A quick shortcut many US workers use: multiply the hourly rate by 2 and add three zeros. At $25/hour that gives roughly $50,000, close to the exact 2,080-hour figure of $52,000. It's a rule of thumb, not a substitute for the real multiplication.

What counts as full-time hours

In the US, full-time is conventionally 40 hours a week, and 40 × 52 = 2,080 hours a year is the standard base most salary tools use. If you take unpaid time off, use fewer weeks; if you're paid for vacation, 52 weeks is correct.

Overtime, shift premiums and unpaid breaks all move the real number. If you regularly work 45 hours but are only paid for 40, base the salary on paid hours. If overtime is paid at 1.5×, add those premium hours separately rather than into the base rate.

Gross vs. net: what you actually take home

The salary you calculate is gross — before income tax, Social Security and Medicare, and any health or retirement deductions. Take-home pay in the US is often 20–30% lower than gross, depending on your state and benefits. A $52,000 gross salary might net closer to $40,000.

Because deductions are non-linear, a higher gross doesn't scale one-to-one into a higher net — a raise can push part of your income into a higher tax band. Always compare offers on net pay, not just the headline gross figure.

Worked with our own calculator

Hourly to salary calculator

Given

Hourly rate
$27.50
Hours per week
80
Weeks per year
104

Result

Annual salary
$228,800.00
Monthly salary
$19,066.67

These figures are produced by the calculator below, not typed in by hand — they are recomputed whenever the tool changes.

Run it on your own figures

Frequently asked questions

How many work hours are in a year?
Full-time in the US is usually taken as 2,080 hours (40 hours × 52 weeks). Subtract unpaid time off if you take it; paid vacation still counts.
Is the result gross or net pay?
It's gross — before taxes and deductions. Your take-home pay will be lower, often by 20–30% once income and payroll taxes are withheld.
How do I convert an annual salary back to an hourly rate?
Divide the annual salary by the hours you work per year. A $52,000 salary over 2,080 hours is $25/hour.
Does part-time work use the same formula?
Yes — just use your real weekly hours. At $25/hour and 20 hours a week, that's $25 × 20 × 52 = $26,000 per year.

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