Hourly to salary
Annual pay depends on how many weeks you actually work. Paid holiday is already inside the 52; unpaid leave is not, so drop the weeks figure if you take it.
Result
- Annual
- $52,000.00
- Monthly
- $4,333.33
- Weekly
- $1,000.00
- Daily (5-day week)
- $200.00
Worked examples
Full-time, standard year
$25/hour, 40 hours a week, 52 weeks.
- 25 × 40 = 1,000 per week
- 1,000 × 52 = 52,000
$52,000 a year.
Unpaid leave
The same rate but only 48 paid weeks.
- 1,000 × 48 = 48,000
$48,000 — four unpaid weeks cost $4,000.
Which weeks count
The 52-week default assumes paid holiday: you are paid across the whole year, some of it while not working. If your leave is unpaid, reduce the weeks figure — that is where an apparently identical hourly rate produces very different annual pay.
Contract and freelance work usually needs a lower figure still, because unbilled time between engagements is neither paid nor holiday. Many contractors plan on 46 to 48 billable weeks.
Gross is not take-home
Everything here is gross pay, before income tax, national insurance or social security, pension contributions and any benefit deductions. Take-home is materially lower and depends on jurisdiction, filing status and allowances.
When comparing an hourly role against a salaried one, the gross comparison is only the start. Employer pension contributions, paid leave and health cover can be worth a substantial fraction of headline pay, and hourly roles frequently lack them.
Formula
annual = rate × hours per week × weeks per year
Frequently asked questions
How do I convert an hourly wage to an annual salary?
Multiply the hourly rate by hours worked per week, then by weeks worked per year. $25 × 40 × 52 = $52,000.
Why is $25 an hour often quoted as about $52,000 a year?
Because 40 hours × 52 weeks is 2,080 hours, and 25 × 2,080 = 52,000. The shortcut is to double the hourly rate and add three zeros — roughly right for full-time work.
Should I use 52 weeks or fewer?
Use 52 if your holiday is paid, since you are paid for the full year. Use fewer if leave is unpaid, or if you are contracting and expect gaps between engagements.
Does this include tax?
No. These are gross figures. Income tax, social security and pension contributions all come out afterwards, and the rates depend on where you live.
How do I account for overtime?
Calculate base hours at the standard rate and overtime hours separately at the premium rate, then add the two annual figures together.