Last updated: May 2026
Quick Answer
Annual Salary = Hourly Rate × Hours per Week × Weeks per Year. At the standard 40-hour week: Hourly × 2,080 = Annual. Example: $25/hr × 2,080 = $52,000/year gross. This is pre-tax — your net take-home will be lower.
Key Takeaways
- ✓ 2,080 hours is the standard US full-time work year (40 hrs × 52 weeks).
- ✓ Gross pay only: Take-home is typically 75–85% after taxes and deductions.
- ✓ Bi-weekly ≠ semi-monthly: Bi-weekly = 26 paychecks/year; semi-monthly = 24 paychecks/year.
- ✓ Unpaid leave: Reduce weeks/year from 52 to the actual paid weeks for accurate annual figures.
How to Use This Calculator (With Example)
Enter your wage amount and select the period it applies to (hourly, daily, weekly, etc.). Then confirm your work schedule — hours per week, days per week, and paid weeks per year. The calculator converts to all other periods instantly.
Scenario: Evaluating a Job Offer
Sarah is comparing two offers: Job A pays $28/hour at 40 hrs/week. Job B offers $56,000/year at 40 hrs/week. Which is better?
Using the Calculator
Job A: $28 × 2,080 hrs = $58,240/year → $4,853/month
Job B: $56,000 ÷ 2,080 = $26.92/hour → $4,667/month
Job A pays $2,240 more annually ($187/month). But Job A is hourly — if hours drop below 40/week or the role has no PTO, the actual annual income could be lower. Job B as a salaried role likely includes benefits and paid holidays that the hourly comparison doesn't capture.
The Salary Conversion Formula
All conversions derive from a single base hourly rate:
- Annual: Hourly × Hours/Week × Weeks/Year
- Monthly: Annual ÷ 12
- Bi-Weekly: Hourly × Hours/Week × 2
- Weekly: Hourly × Hours/Week
- Daily: Hourly × (Hours/Week ÷ Days/Week)
The standard multiplier for US full-time conversion is 2,080 (40 hours × 52 weeks). For non-standard schedules, the calculator adjusts automatically using your custom hours and weeks inputs.
Hourly vs Salary — Key Differences
Choosing between hourly and salaried employment has significant financial and legal implications:
- Overtime eligibility: Non-exempt hourly employees receive 1.5× their regular rate for hours worked over 40/week (US law). Most salaried exempt employees receive no overtime regardless of hours worked. An hourly employee working 45 hours/week earns 12.5% more than their base rate implies.
- Income predictability: Salaried employees receive the same paycheck regardless of hours. Hourly income fluctuates with schedule changes, slow periods, or illness. For budgeting, salary offers more certainty.
- Benefits correlation: Salaried positions more commonly include benefits (health insurance, 401k matching, PTO, paid holidays) than hourly roles. The true value of a benefits package can add $5,000–$20,000 annually to total compensation.
- Status and flexibility: Salaried roles often offer more scheduling flexibility (work from home, no clock-watching) but may come with implicit expectations of longer hours. Hourly roles have clearer on/off boundaries.
Understanding Gross vs. Net Pay
This calculator outputs gross pay — the amount before any deductions. Your actual take-home (net) pay will be reduced by:
- Federal income tax: 10–37% depending on income bracket and filing status
- State income tax: 0% (TX, FL, WA, etc.) to 13.3% (CA) depending on state
- Social Security: 6.2% on wages up to $168,600 (2024)
- Medicare: 1.45% (plus additional 0.9% above $200k)
- Health insurance premiums: Typically $100–$600+/month employee contribution
- 401k contributions: Pre-tax contributions reduce taxable income
As a rough rule: a $52,000 gross salary nets approximately $38,000–$42,000 take-home for a single filer with standard deductions — about 73–81% of gross.
⏱️ How to Calculate Your Hourly Rate
Learn how to translate your target salary into an hourly rate that covers your costs.
Read the Full GuideFrequently Asked Questions
How do you convert an hourly wage to annual salary?
Multiply the hourly wage by the number of hours worked per week, then multiply by 52. For a standard 40-hour week: Hourly × 2,080 = Annual Salary. Example: $25/hr × 2,080 = $52,000/year. This gives gross (pre-tax) annual salary.
What is a standard work year in hours?
2,080 hours (40 hrs/week × 52 weeks). This is the standard used by US employers and payroll systems for full-time salary conversion. It assumes PTO and holidays are paid at the regular rate. Part-time, contract, or unpaid-leave arrangements use different totals — adjust the hours/week or weeks/year inputs accordingly.
How is bi-weekly pay different from semi-monthly pay?
Bi-weekly = paid every two weeks = 26 paychecks/year (2 months have 3 paydays). Semi-monthly = paid twice per month = 24 paychecks/year. With bi-weekly pay, each check is Annual Salary ÷ 26. With semi-monthly, each check is Annual Salary ÷ 24. Bi-weekly paychecks are slightly smaller, but you receive 2 extra per year.
Does this calculator show gross or net pay?
Gross pay only — the pre-tax amount before any deductions. Your actual take-home (net) pay will be lower after federal income tax, state income tax, Social Security (6.2%), Medicare (1.45%), and any benefits contributions (health insurance, 401k, etc.). A $52,000 gross salary typically nets $38,000–$44,000 depending on your tax situation and deductions.
How do I calculate salary for someone who takes unpaid time off?
Change the 'Weeks per Year' input from 52 to the actual paid weeks. If an employee takes 2 weeks of unpaid leave, set weeks/year to 50. At $25/hr × 40hrs × 50 weeks = $50,000 — $2,000 less than the standard 52-week figure. This is particularly important for contractors, seasonal workers, and part-year employees.
When does a salary offer make sense vs an hourly rate?
Salary offers certainty and often signals professional status, but may undervalue overtime work (salaried exempt employees receive no overtime pay). Hourly pay is better when hours fluctuate significantly or overtime is likely. At 45 hours/week with 1.5× overtime, an equivalent hourly worker earns 12.5% more annually than a salaried employee at the same base rate.