How to Convert Hourly Rate to Annual Salary
The formula is straightforward: Hourly Rate × Hours Per Week × 52 Weeks = Annual Salary. At $30/hour working 40 hours per week, that's $30 × 40 × 52 = $62,400/year. If you work fewer than 52 weeks due to unpaid time off, replace 52 with your actual working weeks.
Going the other direction, divide your salary by total annual hours. A $75,000 salary at 40 hours/week: $75,000 ÷ 2,080 = $36.06/hour. If you regularly work 50-hour weeks, your effective hourly rate drops to $28.85—a number worth knowing when comparing job offers.
Most salaried positions assume 2,080 paid hours per year (40 hours × 52 weeks). Part-time roles or positions with unpaid leave require adjusting the weeks-per-year figure downward.
Common Hourly Rates and Their Salaries
| Hourly Rate | Weekly (40 hrs) | Monthly | Annual Salary |
|---|---|---|---|
| $15/hr | $600 | $2,600 | $31,200 |
| $20/hr | $800 | $3,467 | $41,600 |
| $25/hr | $1,000 | $4,333 | $52,000 |
| $30/hr | $1,200 | $5,200 | $62,400 |
| $35/hr | $1,400 | $6,067 | $72,800 |
| $40/hr | $1,600 | $6,933 | $83,200 |
| $50/hr | $2,000 | $8,667 | $104,000 |
| $75/hr | $3,000 | $13,000 | $156,000 |
| $100/hr | $4,000 | $17,333 | $208,000 |
All figures assume 40 hours/week and 52 weeks/year with no unpaid time off. Monthly figures are calculated as annual salary ÷ 12.
How Vacation Time Affects Your Effective Rate
Paid vacation doesn't change your annual salary, but it does change how much you earn per hour actually worked. A $52,000 salary with 2 weeks paid vacation means you work 50 weeks (2,000 hours) instead of 52 weeks (2,080 hours). Your effective hourly rate rises from $25.00 to $26.00.
This distinction matters when comparing a salaried role with 3 weeks PTO against an hourly job with no paid time off. The salaried worker earning $52,000 with 3 weeks PTO has an effective rate of $26.53/hour—meaning an hourly worker needs to earn at least $26.53/hour (and work all 52 weeks) to match the same annual income.
Unpaid vacation is different. If you take 2 weeks unpaid, you only earn for 50 weeks: $25 × 40 × 50 = $50,000 instead of $52,000. Always clarify whether time off is paid or unpaid when evaluating compensation.
Hourly vs Salary: Which Is Better?
Hourly pay means you earn for every hour worked, including overtime (1.5× after 40 hours in most states). You have predictable per-hour earnings and legal protections under the Fair Labor Standards Act. The downside: income fluctuates with hours scheduled, and benefits are often less comprehensive.
Salaried pay provides a fixed annual income regardless of hours, typically with better benefits (health insurance, retirement matching, PTO). The trade-off: many salaried roles are overtime-exempt, meaning extra hours don't increase your paycheck. If you regularly work 50+ hours, your effective hourly rate can drop well below what the salary suggests.
The right answer depends on your situation. If you value income predictability, benefits, and career advancement, salary is usually better. If you want to be paid for every hour and benefit from overtime, hourly may win—especially in trades, healthcare, and tech contracting where hourly rates are high.
- Calculate total compensation, not just base pay. A $60,000 salary with $8,000 in benefits (health, 401k match) equals $68,000 total. Compare that to an hourly rate that includes no benefits.
- Track your actual hours. If you're salaried and working 50 hours/week, divide your salary by 2,600 hours (not 2,080) to see your real hourly rate.
- Factor in overtime potential. An hourly worker at $25/hour who gets 10 hours of weekly overtime earns $25 × 40 + $37.50 × 10 = $1,375/week, or $71,500/year—more than many entry-level salaried positions.
To see how your salary or hourly rate translates to actual take-home pay after taxes, use our paycheck calculator. For understanding which federal tax bracket your income falls into, try the tax bracket calculator.