How hourly pay converts to a salary
The conversion assumes a fixed number of paid hours per week for all 52 weeks of the year:
Annual salary = hourly rate × hours per week × 52
For a 40-hour week that is 2,080 hours a year. The other pay periods follow from the annual figure:
- Monthly = annual ÷ 12, which corresponds to 173.33 hours a month at 40 hours a week (2,080 ÷ 12).
- Biweekly = annual ÷ 26, which is 80 hours at 40 hours a week.
- Semi-monthly = annual ÷ 24, which is 86.67 hours.
- Weekly = hourly rate × hours per week.
Example: $25 an hour, 40 hours a week
- Annual: $25 × 40 × 52 = $52,000
- Monthly: $52,000 ÷ 12 = $4,333.33
- Biweekly: $52,000 ÷ 26 = $2,000
- Weekly: $25 × 40 = $1,000
Overtime is not included. If you regularly work more than 40 hours as a non-exempt employee, the hours over 40 are paid at 1.5 times the regular rate under the FLSA and the overtime calculator gives the more accurate annual figure.
| Hourly rate | 30 h/week | 35 h/week | 40 h/week |
|---|---|---|---|
| $15 | $23,400 | $27,300 | $31,200 |
| $20 | $31,200 | $36,400 | $41,600 |
| $25 | $39,000 | $45,500 | $52,000 |
| $30 | $46,800 | $54,600 | $62,400 |
| $35 | $54,600 | $63,700 | $72,800 |
| $40 | $62,400 | $72,800 | $83,200 |
| $45 | $70,200 | $81,900 | $93,600 |
| $50 | $78,000 | $91,000 | $104,000 |
| $60 | $93,600 | $109,200 | $124,800 |
A quick mental check for a 40-hour week: hourly rate × 2 ≈ annual salary in thousands. $25 an hour is about $50,000; the exact figure is $52,000.
Salary to hourly
Reverse the formula: hourly rate = annual salary ÷ (hours per week × 52). At 40 hours a week, divide by 2,080.
- $60,000 ÷ 2,080 = $28.85 an hour
- $45,000 ÷ 2,080 = $21.63 an hour
- $75,000 ÷ 1,820 (35-hour week) = $41.21 an hour
The hours you divide by should be the hours the salary actually covers. A salaried employee who works 50 hours a week for $60,000 earns $23.08 an hour in effect, not $28.85. Whether those extra hours attract overtime depends on exemption status: for a non-exempt salaried employee the FLSA regular rate is the weekly salary divided by the hours it is intended to cover, and hours over 40 are paid at 1.5 times that rate.
Part-time hours
For part-time work, replace 40 with the real weekly hours. $18 an hour at 24 hours a week is $18 × 24 × 52 = $22,464 a year, or $1,872 a month. If hours vary from week to week, use the average over a representative period, or convert each pay period separately from the actual hours on the time card.
To compare a part-time job with a full-time one, compare hourly rates rather than annual figures. A $30,000 salary for 25 hours a week is $23.08 an hour, which is more than a $40,000 salary for 40 hours ($19.23).
Gross versus net pay
Every figure on this page is gross pay, before federal and state income tax, Social Security and Medicare contributions, health insurance premiums, retirement contributions and other deductions. Net take-home pay depends on filing status, state of residence and the deductions chosen, and differs between two people on the same salary. Treat the gross annual figure as the number to compare offers with, and use a paycheck or tax calculator for the net amount.
Converting in the United Kingdom
The formula is the same, but the inputs differ. A typical UK full-time week is 37.5 hours rather than 40, and some employers annualize on 52.14 weeks (365 ÷ 7) instead of 52. At £15 an hour: 15 × 37.5 × 52 = £29,250, or 15 × 37.5 × 52.14 = £29,328.75. Check your contract for the weekly hours and the weeks figure used; the calculator accepts both as inputs. The UK has no statutory overtime premium, so extra hours are paid as the contract states, subject to the National Minimum Wage.
Frequently asked questions
How much is $25 an hour annually?
At 40 hours a week for 52 weeks, $25 an hour is $52,000 a year: 25 times 2,080. That is $4,333.33 a month, $2,000 biweekly or $1,000 a week, all before taxes. At 35 hours a week the annual figure is $45,500, and at 30 hours it is $39,000.
How do I convert a salary to an hourly rate?
Divide the annual salary by the number of paid hours in a year. For a 40-hour week that is 2,080 hours, so $60,000 a year is $28.85 an hour. For a 37.5-hour week divide by 1,950, and for 35 hours by 1,820. If you regularly work more hours than the salary assumes, your effective hourly rate is lower.
Why 2,080 hours?
2,080 is 40 hours a week times 52 weeks. It is the standard annual hours figure in US payroll because it keeps a salaried employee at the same hourly equivalent all year. A calendar year actually has 52.14 weeks, and paid holidays and vacation reduce the hours worked, but 2,080 remains the conversion convention.
How do I calculate monthly pay from an hourly rate?
Multiply the hourly rate by the weekly hours and by 52, then divide by 12. For 40 hours that equals the hourly rate times 173.33. $20 an hour is $3,466.67 a month. Do not multiply by 4 weeks, which gives $3,200 and understates the year by about 8 percent, because a month averages 4.33 weeks.
Is the result gross or net pay?
Gross. The calculator shows pay before income tax, Social Security, Medicare and other deductions. Net pay depends on your filing status, state and benefit elections, so two people with the same gross salary can take home different amounts. Use the gross figure to compare job offers and a paycheck calculator for take-home pay.
Does the conversion include overtime?
No. It assumes the same hours every week at the straight-time rate. Under the FLSA a non-exempt employee receives 1.5 times the regular rate for hours over 40 in a workweek, so someone working 45 hours every week earns noticeably more than the straight 45-hour conversion. Use the overtime calculator for that case.
How does the calculation differ for the UK?
Same formula, different defaults. UK full-time contracts are commonly 37.5 hours a week, and some employers annualize with 52.14 weeks rather than 52. £15 an hour at 37.5 hours is £29,250 on 52 weeks. There is no statutory overtime rate in the UK; extra hours are paid as the contract provides.
Related calculators
- Work Hours CalculatorEnter your start time, end time and unpaid breaks to get hours worked for a day, a week or a pay period in hh:mm and decimal hours. Overnight shifts, overtime and pay are handled automatically.
- Overtime Calculator: Time and a Half and Double TimeEnter your regular rate and the hours worked each day to see regular pay, overtime hours at 1.5 times and 2 times, and total gross pay under the federal rule or California daily overtime.
- How Many Work Hours Are in a Year and a MonthEnter your weekly hours, vacation days and holidays to see annual and monthly work hours. The standard full-time answer is 2,080 hours a year and 173.33 a month.