Key takeaways
- A full-time year is 40 hours × 52 weeks = 2,080 hours, so annual salary = hourly rate × 2,080.
- A quick mental shortcut: double the hourly rate and add three zeros ($25 an hour is about $50,000; the exact figure is $52,000).
- Unpaid time off, part-time schedules and regular overtime all change the real annual figure, so adjust the hours before multiplying.
- To go the other way, divide an annual salary by 2,080 to get the equivalent hourly rate.
- Compare total pay, not just the rate: overtime eligibility, paid leave and benefits can be worth thousands of dollars a year.
The basic formula
Full-time work in the US is usually counted as 40 hours a week for 52 weeks, which is 2,080 hours a year. Multiply your hourly rate by 2,080 and you have the annual salary that pays the same, assuming every hour is paid, including holidays and vacation.
From the annual figure you can work out other pay periods. Divide by 12 for monthly, by 26 for biweekly and by 52 for weekly pay.
Annual salary = Hourly rate × Hours per week × Paid weeks per year Full-time default: Hourly rate × 40 × 52 = Hourly rate × 2,080
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Hourly to salary table
These figures assume 40 paid hours a week for 52 weeks. They are gross pay, before taxes and deductions.
| Hourly | Annual | Monthly | Biweekly | Weekly |
|---|---|---|---|---|
| $15 | $31,200 | $2,600 | $1,200 | $600 |
| $18 | $37,440 | $3,120 | $1,440 | $720 |
| $20 | $41,600 | $3,467 | $1,600 | $800 |
| $22 | $45,760 | $3,813 | $1,760 | $880 |
| $25 | $52,000 | $4,333 | $2,000 | $1,000 |
| $30 | $62,400 | $5,200 | $2,400 | $1,200 |
| $35 | $72,800 | $6,067 | $2,800 | $1,400 |
| $40 | $83,200 | $6,933 | $3,200 | $1,600 |
| $45 | $93,600 | $7,800 | $3,600 | $1,800 |
| $50 | $104,000 | $8,667 | $4,000 | $2,000 |
| $60 | $124,800 | $10,400 | $4,800 | $2,400 |
| $75 | $156,000 | $13,000 | $6,000 | $3,000 |
When 2,080 hours is the wrong number
The 2,080 figure assumes you are paid for every week of the year. Many hourly jobs do not pay for holidays or vacation, and many people do not work exactly 40 hours. Use the hours you are actually paid for.
- Unpaid time off: two weeks unpaid means 50 paid weeks, or 2,000 hours. At $25 an hour that is $50,000, not $52,000.
- Unpaid holidays: ten unpaid holidays at 8 hours each removes 80 hours, leaving 2,000.
- Part-time: 30 hours a week × 52 weeks is 1,560 hours. At $20 an hour that is $31,200.
- Shorter full-time weeks: some employers count 37.5 hours as full time, which is 1,950 hours a year.
- Seasonal work: count only the weeks you expect to work.
Adding overtime
Under the federal Fair Labor Standards Act, covered non-exempt employees must be paid at least one and a half times their regular rate for hours over 40 in a workweek. If you regularly work overtime, include it, but keep in mind it may not be guaranteed.
Example: you earn $25 an hour and work 45 hours a week, every week. Regular pay is 40 × $25 = $1,000. Overtime is 5 × $37.50 = $187.50. Weekly pay is $1,187.50, and over 52 weeks that is $61,750 a year. A salaried offer of $55,000 with no overtime pay would be a pay cut for the same hours.
Many salaried employees are classified as exempt from overtime, which means extra hours earn nothing extra. Exemption depends on meeting a minimum salary level and job duties tests set by federal and sometimes state law, not on simply being paid a salary.
Free toolOvertime pay calculatorQuick mental math
Because 2,080 is close to 2,000, you can estimate an annual salary by doubling the hourly rate and adding three zeros. $18 an hour becomes about $36,000; the exact figure is $37,440. The shortcut always comes out about 4% low, because 2,000 hours leaves out 80 hours, exactly two weeks of full-time pay.
Going the other way, halve the salary and drop three zeros. A $90,000 salary is about $45 an hour; the exact figure at 2,080 hours is $43.27. For a monthly figure, an hourly rate times 173.33 gives the same result as multiplying by 2,080 and dividing by 12.
Salary to hourly
To find what a salary is worth per hour, divide it by 2,080, or by the hours you actually expect to work. A $70,000 salary is $33.65 an hour at 40 hours a week. If the job really takes 50 hours a week, it is $70,000 ÷ 2,600 = $26.92 an hour.
That second number is the one to compare with an hourly offer. A higher salary can pay less per hour once long weeks are counted.
Hourly rate = Annual salary ÷ (Hours per week × Paid weeks per year)
Comparing an hourly job with a salaried job
Once both offers are on an annual basis, look at what else comes with them. Paid time off, holiday pay, health insurance contributions, retirement matching and overtime eligibility all have real dollar values.
Contract or 1099 work is different again. A contractor pays both halves of Social Security and Medicare through self-employment tax, buys their own benefits, and is not paid for gaps between projects. A contract rate usually needs to be well above an employee's hourly rate to come out even.
| Offer A: hourly | Offer B: salaried | |
|---|---|---|
| Pay | $27 an hour, 40 hours | $54,000 salary |
| Paid weeks | 50 (2 weeks unpaid) | 52 (includes 3 weeks paid leave) |
| Base annual pay | $54,000 | $54,000 |
| Overtime | Time and a half over 40 | Exempt, none |
| Typical 2 hours a week overtime | +$4,050 | $0 |
| Annual total | $58,050 | $54,000 |
Gross salary is not take-home pay
Every figure above is gross pay. Federal and state income tax, 6.2% for Social Security on wages up to the 2026 wage base of $184,500, 1.45% for Medicare, and any benefit or retirement deductions come out before you are paid. Use a paycheck calculator to see what reaches your bank account.
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