Comparing an hourly job to a salaried one is easier when both are expressed the same way. This guide shows how to convert an hourly wage into an annual salary and back again.
The conversion formula
To convert an hourly wage to an annual salary, multiply the hourly rate by the hours you work per week, then by the number of weeks you work per year:
For full-time work that usually means 40 hours × 52 weeks = 2,080 hours. So a $25/hour wage equals 25 × 2,080 = $52,000 per year before taxes.
Common hourly rates as annual salaries
Full-time (40 hrs/week, 52 weeks) gross annual pay
| Hourly rate | Weekly | Annual |
|---|---|---|
| $15.00 | $600 | $31,200 |
| $18.00 | $720 | $37,440 |
| $20.00 | $800 | $41,600 |
| $25.00 | $1,000 | $52,000 |
| $30.00 | $1,200 | $62,400 |
Salary back to an hourly rate
To go the other way, divide the annual salary by your annual hours. A $60,000 salary at 2,080 hours is about $28.85/hour. If a salaried role expects 45–50 hour weeks, the effective hourly rate drops accordingly — a useful check when comparing offers.
Gross pay is not take-home pay
These conversions give gross pay, before deductions. Your take-home (net) pay will be lower after federal income tax, Social Security and Medicare (FICA), any state or local taxes, and benefits like health insurance. Learn more in our gross pay vs. net pay guide.
Quick conversion table for common hourly rates
These figures assume a 40-hour week for 52 weeks (2,080 hours) with no overtime. They are gross, before taxes and deductions.
Hourly rate converted to annual, monthly, and biweekly gross pay (2,080 hours/year)
| Hourly | Annual | Monthly | Biweekly |
|---|---|---|---|
| $15.00 | $31,200 | $2,600 | $1,200 |
| $18.00 | $37,440 | $3,120 | $1,440 |
| $20.00 | $41,600 | $3,467 | $1,600 |
| $25.00 | $52,000 | $4,333 | $2,000 |
| $30.00 | $62,400 | $5,200 | $2,400 |
| $35.00 | $72,800 | $6,067 | $2,800 |
| $40.00 | $83,200 | $6,933 | $3,200 |
Comparing an hourly job to a salaried offer
Converting the rate is only the first step. The two pay structures behave differently once real working hours enter the picture, and the difference usually runs in opposite directions.
- A non-exempt hourly worker is paid more when the week runs long, because hours over 40 earn a premium. Extra hours increase income.
- An exempt salaried worker generally earns the same amount whether the week is 40 hours or 55. Extra hours reduce the effective hourly rate.
That is why a $60,000 salary and a $28.85/hour job are not equivalent offers in practice. At a genuine 40 hours the salary works out to $28.85/hour. At a routine 50-hour week the same salary is about $23.08/hour, while the hourly worker at $28.85 would be earning roughly $77,000 for those same 50-hour weeks. Ask about typical weekly hours before treating a converted figure as a like-for-like comparison.
Look at total compensation, not just the rate
Benefits often account for a substantial share of what a job is worth, and they rarely appear in the headline number. When comparing two offers, try to price the whole package:
Components to add to the base rate when comparing offers
| Component | What to ask |
|---|---|
| Health insurance | What is the monthly employee premium, deductible, and out-of-pocket maximum? |
| Retirement match | Is there an employer match, and what is the vesting schedule? |
| Paid time off | How many paid days off and holidays? Unpaid days directly reduce an hourly worker's income. |
| Schedule stability | Are hours guaranteed, or can a slow week cut your income? |
| Overtime availability | Is overtime routinely available, occasional, or effectively mandatory? |
For an hourly worker without paid leave, unpaid days are a real pay cut. Eleven holidays plus two weeks of unpaid vacation is roughly 168 hours a year — about 8% of gross income at a 40-hour schedule. A salaried offer that pays through those days can be worth more than a slightly higher hourly rate that does not.
If the offer is contract or 1099, raise the rate
An independent contractor rate is not comparable to an employee rate at face value. As a self-employed worker you pay both halves of Social Security and Medicare — self-employment tax of roughly 15.3% on net earnings, versus the 7.65% an employee has withheld — and you typically fund your own health insurance, retirement, equipment, and unpaid time off.
As a rough starting point, many contractors treat a 1099 rate as needing to be meaningfully higher than an equivalent W-2 rate just to break even after the extra tax burden and lost benefits. The exact premium depends on your health coverage costs and how much unpaid downtime you expect between contracts. Note that whether a role is genuinely contract work is a legal question about the working relationship, not simply a label an employer chooses.
Frequently Asked Questions
$20 an hour is how much a year?
At 40 hours per week for 52 weeks, $20/hour is $41,600 per year before taxes.
$18 an hour is how much a year?
$18/hour full-time (40 hours × 52 weeks) equals $37,440 per year before taxes.
How do I convert a salary to an hourly rate?
Divide the annual salary by your annual hours worked (usually 2,080 for full-time). A $52,000 salary is about $25/hour.
Related tools & guides
This guide is for general informational purposes only and is not legal, tax, or financial advice. Labor laws vary by state and change over time. Confirm your specific situation with your employer, HR department, or the U.S. Department of Labor.