Hourly to Salary: How to Convert and Compare Pay

Converting an hourly rate to an annual salary is straightforward for full-time work:

Annual Salary = Hourly Rate × Hours Per Week × Weeks Per Year

For a standard full-time employee (40 hours/week, 52 weeks/year):

Annual Salary = Hourly Rate × 2,080

Common examples:

• $15/hour × 2,080 = $31,200/year
• $25/hour × 2,080 = $52,000/year
• $50/hour × 2,080 = $104,000/year

The reverse formula to find your hourly rate from a salary:

Hourly Rate = Annual Salary ÷ 2,080

A $75,000 salary ÷ 2,080 = $36.06/hour. A $100,000 salary ÷ 2,080 = $48.08/hour.

The 2,080-hour standard assumes 40 hours/week for 52 weeks with no unpaid time off. Reality is often different.

Part-time workers: Adjust the formula for your actual hours.

• $18/hour × 25 hrs/week × 52 weeks = $23,400/year

Contract workers and freelancers: Factor in unpaid time (no paid holidays, no paid vacation). A $50/hour contractor who works 48 weeks (4 weeks unpaid) earns $96,000 vs a $50/hour employee with paid leave who effectively earns more per hour worked.

Hourly pay and salaried pay each have distinct pros and cons:

Hourly advantages:

• Overtime pay (1.5× for hours over 40/week under FLSA)
• Pay exactly reflects hours worked

Salaried advantages:

• Predictable income regardless of hours
• Often comes with more benefits (401k match, PTO, health insurance)

Watch out for: Salaried "exempt" employees are not entitled to overtime pay. A salaried manager earning $55,000 who regularly works 50–55 hours/week earns an effective hourly rate of $20–$21 — less than many hourly positions in the same field.

Whether you earn $30/hour or $62,400/year, your take-home pay will be significantly less than your gross pay after taxes:

Example: $30/hour single filer in a state with no income tax

• Gross Annual: $62,400
• Federal Income Tax: ~$5,450
• Social Security (6.2%): $3,869
• Medicare (1.45%): $905
• Net Annual Take-Home: ~$52,176
• Net Hourly Equivalent: ~$25.09/hour

In a state with income tax, your net would be lower. Use our hourly to salary calculator or salary after tax calculator to get your precise take-home estimate.

The federal minimum wage has remained $7.25/hour since 2009. Many states have adopted higher minimums:

2026 state minimum wages (selected):

• California: $16.50/hour ($34,320/year full-time)
• Washington: $16.66/hour ($34,652/year)
• New York: $16.50/hour (NYC: $17.00/hour)
• Florida: $14.00/hour ($29,120/year)
• Texas: $7.25/hour (federal minimum, $15,080/year)

At $15/hour nationally, a full-time worker earns $31,200/year gross — approximately $26,000–$28,000 after FICA and federal income tax.