How to use the Hourly to Salary
- Enter your hourly rate and usual hours per week.
- Enter the number of weeks you are actually paid for.
- Read the weekly, monthly and annual equivalents.
- Reverse the calculation to test a salaried offer against your current rate.
How the calculation works
The standard full-time convention is 40 hours over 52 weeks, which gives 2,080 paid hours a year — the divisor behind most salary-to-hourly conversions. The result is gross pay before tax and deductions, so a take-home comparison requires running it through a paycheck or income tax calculation.
The conversion hides a real difference between employment types. A salaried role is generally paid through holidays and sick leave, while an hourly worker without paid leave earns nothing during them, so an hourly rate needs to be higher to match. Unpaid overtime cuts the other way: a salary divided by the hours actually worked, rather than the contracted 40, is often the honest comparison.
Annual = hourly × hours per week × weeks paid ; Hourly = annual / (hours per week × weeks paid)Source: 2,080-hour full-time year convention used in US payroll and BLS wage reporting.
Worked example
An hourly rate of 27.40 at 38 hours a week, paid 52 weeks, compared with a 56,000 salary that involves 45-hour weeks.
- Annual from hourly = 27.40 × 38 × 52 = 54,142.
- The salaried role at contracted 40 hours = 56,000 / 2,080 = 26.92 per hour.
- At the 45 hours actually worked = 56,000 / 2,340 = 23.93 per hour.
The hourly job pays 54,142 a year. The salary looks higher, but at 45-hour weeks it is worth 23.93 an hour against the current 27.40.
Frequently asked questions
Why is 2,080 the standard number of hours?+
It is 40 hours multiplied by 52 weeks, the conventional full-time paid year in US payroll. It includes paid holidays, since those are paid time rather than extra hours.
Is the result before or after tax?+
Before. It is gross pay, so run it through a paycheck or income tax calculator with your filing details to see take-home pay.
How should I value paid leave when comparing offers?+
Count how many paid days each role provides and convert them to money at the daily rate. Fifteen paid days is roughly 6% of an annual salary — often more than the headline difference between two offers.
How does overtime affect the annual figure?+
Enter your average total hours including overtime, at the premium rate if it applies. Basing an annual figure on peak-season overtime that does not repeat overstates your income.
Last reviewed August 31, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.