How to Calculate Salary: Hourly to Annual (And Every Conversion You Need)

Whether you’re comparing a job offer, budgeting your income, or filing taxes, converting between hourly wage and annual salary is a calculation you’ll use throughout your career. This guide covers every conversion you’ll need, with formulas, examples, and a free salary calculator.

How to Convert Hourly to Annual Salary

Annual Salary = Hourly Rate × Hours per Week × 52

Example: You earn $25/hour and work 40 hours/week.
Annual = $25 × 40 × 52 = $52,000/year

How to Convert Annual Salary to Hourly

Hourly Rate = Annual Salary ÷ (Hours per Week × 52)

Example: You earn $65,000/year and work 40 hours/week.
Hourly = $65,000 ÷ (40 × 52) = $65,000 ÷ 2,080 = $31.25/hour

Salary Conversion Quick Reference Table

Hourly RateWeekly (40 hrs)MonthlyAnnual
$15/hr$600$2,600$31,200
$20/hr$800$3,467$41,600
$25/hr$1,000$4,333$52,000
$35/hr$1,400$6,067$72,800
$50/hr$2,000$8,667$104,000
$75/hr$3,000$13,000$156,000

Gross Salary vs. Net (Take-Home) Salary

Your gross salary is the number before any deductions. Your net salary (take-home pay) is what actually hits your bank account after federal taxes, state taxes, Social Security, Medicare, and benefits deductions. On average, US workers take home 65–75% of their gross salary depending on state and income level.

How Overtime Affects Annual Income

In the US, non-exempt employees earn 1.5× their regular rate for hours worked beyond 40 per week (federal overtime rules). If you work 10 hours of overtime per week at $25/hour:

Overtime pay = $25 × 1.5 × 10 hrs × 52 weeks = $19,500 extra/year

Comparing Salary Offers

When comparing a salaried role vs. an hourly role, convert both to the same unit. Also factor in benefits: a $60,000 salaried role with full health insurance may be worth more than a $65,000 hourly equivalent without benefits.

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