The formula
A quick shortcut for full-time work: multiply the hourly wage by about 2,000 (2,080 exactly). $25 an hour is roughly $50,000 a year; $52,000 exactly at 40 hours and 52 weeks.
Common hourly wages as salaries (40 hrs × 52 weeks)
Overtime
Under the federal Fair Labor Standards Act, non-exempt employees earn at least 1.5× their regular rate for hours over 40 in a workweek. Five overtime hours a week at $25/hr adds $9,750 a year.
Unpaid time off
If you don’t get paid vacation or holidays, enter the weeks you actually work (for example 50) so the annual figure isn’t overstated.
Related Wage & Compensation Tools
Converting hourly pay rates into annualized income clarifies full-time earning potential. Compare salaried pay structures using our Salary Calculator, calculate net earnings after payroll taxes with the Take Home Pay Calculator, evaluate annual tax liability via the Tax Calculator, and structure a monthly living plan using our Budget Calculator.
Frequently asked questions
How much is $20 an hour per year?
$41,600 at 40 hours a week for 52 weeks, or about $3,467 a month before taxes.
What hourly rate equals a $60,000 salary?
About $28.85 an hour at 40 hours a week (60,000 ÷ 2,080).
Should freelancers use this?
Freelancers should charge more than an employee's hourly equivalent to cover self-employment tax, unpaid time, benefits and business costs. Try the freelance rate calculator.