To turn an hourly wage into an annual salary, multiply your hourly rate by your hours per week, then by the number of paid weeks you work in a year.

The usual shortcut is 40 hours and 52 weeks. That is fine if your schedule really looks like that. Plenty do not, and the gap is bigger than people expect.

The formula

Annual gross pay = hourly rate x hours per week x paid weeks per year.

At $25 an hour, 40 hours a week, and 52 paid weeks: $25 x 40 x 52 = $52,000 a year, before tax and deductions.

Weekly and monthly pay

Weekly gross is your rate times your weekly hours. At $25 for 40 hours, that is $1,000.

Monthly is the annual figure divided by 12, so $52,000 gives $4,333.33. That is an average, not the amount that lands in your account each month. If you are paid every two weeks you will never actually receive $4,333.33, and budgeting as though you will is where people get caught.

Fit the formula to your schedule

At $30 an hour, 35 hours a week, and 48 paid weeks: $30 x 35 x 48 = $50,400.

The 40 by 52 shortcut would have said $62,400 for the same rate. That is $12,000 too high. Shorter weeks and unpaid weeks both matter, and together they compound.

How many weeks should you use?

Use 52 when you are paid for all 52 weeks. Use fewer when some weeks are genuinely unpaid, which is common in seasonal and term time work.

Do not subtract paid vacation. If you still receive your normal pay that week, it counts as a paid week.

Going the other way

Divide the annual salary by your total hours for the year. $52,000 divided by 2,080 hours, which is 40 x 52, is $25 an hour.

What this does not include

  • Overtime, bonuses, commission, tips, and shift premiums, unless you add them yourself.
  • Tax, insurance, and retirement contributions. This is gross pay, not what reaches your account.
  • Benefits, which can be worth thousands and are the thing people most often forget when weighing an hourly job against a salaried one.

Convert it properly

The Hourly to Salary Calculator lets you set your own weekly hours and paid weeks, then shows hourly, weekly, monthly, and annual side by side. It also runs backwards if you are starting from a salary. If overtime is a regular part of your week, work that out in the Overtime Pay Calculator and add it on top.

Frequently asked questions

How much is $25 an hour a year?

$52,000 before tax, at 40 hours a week for 52 paid weeks. Fewer hours or unpaid weeks bring it down, so use your real schedule rather than the default.

How many work hours are in a year?

2,080 at 40 hours a week for 52 weeks. That is the figure used to convert a salary back to an hourly rate.

Should I subtract my vacation weeks?

Not if the vacation is paid. Only reduce the number of weeks when you genuinely receive nothing for them.

Is this my take home pay?

No. It is gross pay, before tax, insurance, and retirement contributions come out. What actually reaches your account will be lower.