How to Convert an Hourly Wage to an Annual Salary
Comparing an hourly job to a salaried one starts with putting both on the same yearly footing. The conversion is simple arithmetic, but a couple of real-world details — hours actually worked and the gap between gross and net — decide what you really earn.
The basic formula
Annual salary = hourly rate x hours per week x weeks per year. Full time is usually taken as 40 hours over 52 weeks, so $25 an hour is 25 x 40 x 52 = $52,000 a year. The Hourly-to-Salary Calculator lets you set the hours and weeks to match your situation.
Part-time and unpaid time
If you work fewer hours, use your real weekly hours. And if your hourly job has no paid holiday, subtract those weeks: 48 paid weeks instead of 52 lowers a $25/hour income from $52,000 to $48,000. A salaried role that includes paid leave is worth more than the headline hourly comparison suggests.
Overtime and shift premiums
Hourly work often pays extra for overtime — commonly 1.5x beyond 40 hours — which a straight conversion misses. If overtime is regular, add it in; if it is unpredictable, base your budget on the guaranteed hours and treat overtime as a bonus.
Gross is not take-home
The salary you calculate is gross — before income tax, social contributions and any deductions. Take-home pay can be meaningfully lower and varies by country and bracket. When comparing offers, compare like with like: gross to gross, or estimate net for both.
Frequently asked questions
How many work hours are in a year? Full time is about 2,080 (40 x 52), so a quick estimate is hourly rate x 2,000 for a round yearly gross.
Is salaried better than hourly? It depends — salaried often brings paid leave and stability, hourly can pay overtime. Compare total value, not just the rate.
Should I use 52 weeks? Use 52 for a gross figure, or fewer if your role has unpaid weeks you want reflected.
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Last updated: August 27, 2026