How to Convert an Hourly Wage to an Annual Salary
The simple formula to turn an hourly rate into a yearly salary (and back), plus the quick mental shortcut and the mistakes to avoid.
Comparing a job that pays by the hour with one that pays a salary, or just want to know what your wage adds up to over a year? Converting between hourly and annual pay takes one short formula, and a handy shortcut you can do in your head.
The formula
Annual salary = hourly rate × hours per week × 52
If you earn $20 an hour working 40 hours a week: 20 × 40 × 52 = $41,600 a year (gross). To go the other way, divide: an $41,600 salary ÷ 52 ÷ 40 = $20 an hour.
Common conversions
| Hourly rate | Per week (40 hrs) | Annual (gross) |
|---|---|---|
| $15 | $600 | $31,200 |
| $20 | $800 | $41,600 |
| $25 | $1,000 | $52,000 |
| $30 | $1,200 | $62,400 |
| $40 | $1,600 | $83,200 |
For a fast estimate, multiply your hourly rate by 2,000 (roughly 40 hours × 50 weeks). $25 × 2,000 = $50,000. It's close enough for quick comparisons, then use the full formula when it matters.
Watch these details
- Unpaid time off. The 52-week version assumes you're paid every week. If you take unpaid leave, use the weeks you're actually paid (often ~50).
- Overtime. Extra or higher-rate hours push your real annual figure above the simple calculation.
- Part-time. Just use your actual weekly hours in the formula.
- Benefits. A salaried role may include paid leave, insurance or a pension that an hourly role doesn't, worth real money beyond the headline number.
The converted figure is before tax. To compare offers properly, run each through a take-home pay estimate, two roles with the same gross can differ in net depending on benefits and deductions.
See the take-home version. Enter your converted annual salary to estimate your net pay after tax.
Open the Take-Home Pay Calculator →The bottom line
Multiply your hourly rate by your weekly hours and by 52 to get your annual salary, or by 2,000 for a quick estimate. Just remember it's a gross figure: adjust for unpaid leave and overtime, then check the take-home version before you compare job offers.
Frequently asked questions
How do I convert my hourly wage to an annual salary?
Multiply your hourly rate by the hours you work per week, then by 52 weeks. For example, $20/hour × 40 hours × 52 = $41,600 a year (gross).
What's the quick way to estimate annual salary from hourly?
Multiply your hourly rate by 2,000. That assumes roughly 40 hours a week for 50 weeks and gets you close instantly, for example $25 × 2,000 = $50,000.
Is the converted salary my take-home pay?
No. The conversion gives gross annual pay before tax. Your actual take-home will be lower after income tax and other deductions.