How to Convert an Hourly Wage to an Annual Salary

An hourly rate and a yearly salary describe the same pay in two ways. Turning one into the other takes a single formula. Here it is, with a worked example and the two things that most often change the answer: your hours and your weeks.

The short version: multiply your hourly rate by the hours you work each week, then by the weeks you work each year. The result is your yearly pay before taxes.

The hourly-to-salary formula

One line covers it. It uses your rate, your weekly hours, and the weeks you work in a year.

Annual salary = hourly rate × hours per week × weeks per year

Full-time work in the United States is usually 40 hours a week across 52 weeks, which is 2,080 hours a year. That 2,080 is the figure many salary estimates assume, so it is worth remembering.

A worked example, step by step

Say you earn $22 an hour and work full time, 40 hours a week. Follow the steps.

1. Start with the rate: $22 an hour.
2. Weekly pay: 22 × 40 = $880.
3. Yearly pay: 880 × 52 = $45,760.

So $22 an hour is about $45,760 a year at full time. You can shortcut it with the 2,080-hour figure: 22 × 2,080 = $45,760, the same answer. This is gross pay, the amount before taxes, insurance, and other deductions come out.

Part-time and irregular hours

The formula bends to any schedule. Change the hours and the answer follows. Say you work 25 hours a week at the same $22 rate.

1. Weekly pay: 22 × 25 = $550.
2. Yearly pay: 550 × 52 = $28,600.

So the same rate brings $28,600 a year at 25 hours a week. If your hours swing from week to week, use your average weekly hours, or add up a full year of hours and multiply once by the rate.

Unpaid time off changes the weeks

The 52-week assumption treats every week as paid. If you take unpaid leave, use the weeks you actually get paid. Say you take two weeks unpaid, so you work 50 weeks at 40 hours and $22.

That is 22 × 40 × 50 = $44,000, about $1,760 less than the full 52-week figure. Paid vacation does not change the math, since those weeks still pay. Only unpaid weeks lower the total.

Going the other way

To turn a salary back into an hourly rate, divide by the hours you work in a year. A $45,760 salary at 2,080 hours is 45,760 / 2,080 = $22 an hour. This helps when you compare a salaried offer with an hourly one. Just make sure both use the same yearly hours, or the comparison tilts.

Breaking the year into months and weeks

Once you have the yearly figure, smaller periods follow with simple division. Take the full-time $45,760 from the example above.

• Monthly: 45,760 / 12 = about $3,813.
• Weekly: 45,760 / 52 = $880, which matches the weekly pay we found.
• Biweekly: 45,760 / 26 = about $1,760 per two-week stretch.

These splits help when a budget runs by the month but the job pays by the hour. One caution: a biweekly schedule pays 26 times a year, not 24, so two months each year carry a third paycheck. Plan around the 26 figure and the extra checks become a small bonus rather than a surprise.

Common mistakes to avoid

• Reading the result as take-home pay. It is gross pay, before taxes and deductions.
• Always using 52 weeks. Subtract any unpaid weeks to match what you really earn.
• Forgetting overtime or a different overtime rate, which the simple formula does not include.
• Comparing an hourly job to a salaried one without matching the yearly hours on both sides.

Frequently asked questions

How many work hours are in a year? Full time is usually 40 hours a week across 52 weeks, which is 2,080 hours. Part-time and seasonal work have fewer.

Is the result before or after taxes? Before. The formula gives gross pay. Your take-home pay is lower once taxes, insurance, and retirement contributions come out.

Does paid vacation lower my salary? No. Paid weeks still pay, so they stay in the count. Only unpaid weeks reduce the yearly figure.

How do I handle overtime? Add it separately. Work out your base pay with the formula, then add overtime hours at their own rate, often 1.5 times the base.

Do I need to do this by hand? No. The formula is simple to know, but a calculator is faster and shows the weekly and monthly figures too. Use the one below to convert in a second.