Finance · 1 min read
How to convert an hourly wage to an annual salary
Multiply your hourly rate by the hours you work in a year. The only choices are how many hours and how many weeks.
Last updated November 3, 2026
The standard formula
Formula
annual pay = hourly rate × hours per week × weeks per year
- hourly rate
- pay per hour before tax
- hours per week
- 40 for a full-time week
- weeks per year
- 52 for a full year
Worked example
25 dollars an hour, full time
| Period | Calculation | Pay |
|---|---|---|
| Year | 25 × 2,080 hours (40 × 52) | 52,000 |
| Month | 52,000 ÷ 12 | about 4,333 |
| Week | 25 × 40 | 1,000 |
Result: 25 × 2,080 = 52,000 dollars a year
Adjust for your real schedule
- Part-time: replace 40 with your actual weekly hours.
- Unpaid time off: reduce the weeks you are paid.
- Paid holidays and vacation are normally already included in the 52 weeks.
Overtime
In the United States, federal law requires most non-exempt employees to be paid at least one and a half times their regular rate for hours over 40 in a week. At 20 dollars an hour, each overtime hour pays 30 dollars.
Important
State rules and employer policies can be more generous, so check your own terms.
Gross is not take-home
The annual figure above is gross pay, before income tax and other deductions. To see an estimate of what arrives in your account, use the take-home pay calculator.