Hourly to Salary Calculator

Converting between an hourly wage and an annual salary is a critical skill when comparing job offers, negotiating pay, or understanding whether a raise actually improves your take-home. The math is simple, but the assumptions matter enormously.

Standard formula (40-hour week, 52 weeks): Annual Salary = Hourly Rate × 40 × 52 = Hourly Rate × 2,080

Reverse (salary to hourly): Hourly Rate = Annual Salary ÷ 2,080

What each variable means:

• 2,080 is the standard full-time hours per year (40 hours/week × 52 weeks), and the most common assumption in U.S. salaried comparisons.
• Actual working hours are lower. Subtract paid holidays, typically 10 days or 80 hours in the U.S., to get roughly 2,000 hours actually worked.
• Paid time off (PTO) is already inside the 2,080 figure for salaried employees, since you are paid for those weeks whether or not you work them. Hourly workers do not always get paid PTO, and that is the real difference between the two arrangements rather than the rate itself.

Worked example: Hourly wage: $22.50/hour

Annual = $22.50 × 2,080 = $46,800/year Monthly (gross) = $46,800 ÷ 12 = $3,900/month Biweekly paycheck = $46,800 ÷ 26 = $1,800 per paycheck

Reverse example: Salary offer: $65,000/year Hourly equivalent = $65,000 ÷ 2,080 = $31.25/hour

Quick mental shortcut: Double the hourly rate and add three zeros ≈ annual salary. $20/hr → ~$40,000/year (exact: $41,600) $25/hr → ~$50,000/year (exact: $52,000)

Important caveat: Salaried positions often include benefits (health insurance, 401k match, paid leave) worth $8,000–$15,000/year that hourly positions may not. Always compare total compensation, not just base pay.