How do you convert hourly to salary?

Multiply your hourly rate by 2,080 (40 hours/week x 52 weeks). For example, $25/hour x 2,080 = $52,000 per year. If you work fewer than 40 hours per week, adjust the weekly hours accordingly.

Does the 2,080 formula account for vacation and holidays?

No. The formula assumes you are paid for all 52 weeks, including vacation and holidays. If you are a salaried employee, your salary already covers PTO. If you are hourly and don't receive paid time off, your actual annual earnings will be less than the formula suggests.

How to Convert Hourly Wage to Annual Salary

Salary & Compensation3 min read·Updated for 2025

Quick Answer

To convert an hourly wage to an annual salary, multiply your hourly rate by 2,080 (40 hours per week times 52 weeks). For example, $30/hour equals $62,400 per year. This standard formula assumes full-time work with no unpaid time off. Your actual take-home pay will be lower after taxes and deductions.

The Basic Formula

Hourly Rate x 2,080 = Annual Salary

Hourly Rate	Annual Salary
$15/hour	$31,200
$20/hour	$41,600
$25/hour	$52,000
$30/hour	$62,400
$40/hour	$83,200
$50/hour	$104,000
$75/hour	$156,000

For other time periods:

Weekly: Hourly rate x 40
Biweekly: Hourly rate x 80
Monthly: Hourly rate x 173.33
Annually: Hourly rate x 2,080

Real Example With Actual Numbers

Taylor earns $28/hour in Texas and works 40 hours per week.

Gross annual salary: $28 x 2,080 = $58,240

Now let's calculate take-home pay:

Deduction	Annual	Per Biweekly Paycheck
Gross pay	$58,240	$2,240
Federal income tax	-$5,350	-$205.77
Social Security (6.2%)	-$3,610.88	-$138.88
Medicare (1.45%)	-$844.48	-$32.48
Take-home	$48,434.64	$1,862.87

Taylor's $28/hour translates to about $1,863 every two weeks after federal taxes. No state tax because Texas has no income tax. Use the SalaryHog calculator to see the full breakdown for your hourly rate and state.

Adjusting for Overtime

If you regularly work overtime, your annual earnings will be higher. Overtime is paid at 1.5x your regular rate for non-exempt employees.

Taylor works 5 overtime hours per week:

Regular: 40 hours x $28 = $1,120/week
Overtime: 5 hours x $42 (1.5x) = $210/week
Weekly total: $1,330
Annual with OT: $69,160 (vs $58,240 without OT)

Adjusting for Unpaid Time Off

If you are hourly and do not receive paid time off, reduce the weeks accordingly:

Unpaid Weeks Off	Working Weeks	Annual Salary ($28/hr)
0	52	$58,240
1	51	$57,120
2	50	$56,000
3	49	$54,880
4	48	$53,760

Two weeks of unpaid vacation reduces annual earnings by $2,240.

Comparing Hourly vs Salaried Positions

When evaluating a job offer, do not just compare the gross numbers. A salaried position at $55,000 may be worth more than $28/hour ($58,240) because salaried jobs typically include:

Paid time off (2-4 weeks)
Employer-sponsored health insurance
401(k) match
Paid holidays
Overtime protection (or lack thereof — see exempt vs non-exempt)

See salary vs total compensation for a comprehensive comparison.

Quick Reference Table

Hourly	Weekly	Biweekly	Monthly	Annual
$15	$600	$1,200	$2,600	$31,200
$20	$800	$1,600	$3,467	$41,600
$25	$1,000	$2,000	$4,333	$52,000
$30	$1,200	$2,400	$5,200	$62,400
$35	$1,400	$2,800	$6,067	$72,800
$40	$1,600	$3,200	$6,933	$83,200
$50	$2,000	$4,000	$8,667	$104,000

Enter your hourly rate at the SalaryHog calculator to see your annual take-home pay, or check whether your income qualifies as a good salary for your state.