How do you convert hourly to annual salary?

Multiply hourly rate by hours per week by weeks worked per year. The standard assumption is 40 hours and 52 weeks (2,080 hours), giving annual salary = hourly × 2,080. If you take unpaid time off, drop the weeks (e.g. 50 weeks for 2 weeks unpaid PTO). PayslipIQ adjusts on the fly so the answer reflects your actual schedule.

Why does $25/hour come out as ~$52,000 a year, not $50,000?

$25 × 40 hours × 52 weeks = $52,000. The often-quoted "$50k = $25/hour" rule of thumb assumes 50 weeks worked (i.e. 2 weeks unpaid vacation). Both are right; the difference is whether you are paid for vacation weeks or not. Salaried employees usually are; many hourly workers are not.

Does this handle overtime?

Yes. The optional overtime block adds (overtime hours per week × hourly rate × multiplier × weeks) to the base. Federal FLSA standard is 1.5x for hours over 40 per week. California, Alaska, Nevada, Colorado, and a few others have daily overtime rules (>8 hours/day at 1.5x, >12 at 2x). The calculator uses your chosen multiplier on the weekly overtime hours you enter.

Are part-time and gig hours included?

Yes. Enter whatever weekly hours you actually work. 20 hours/week × 52 weeks at $25/hour = $26,000 annual. The math is the same; the tax estimate scales accordingly.

The right-hand panel runs an annualised estimate using the IRS Pub 15-T 2026 percentage method (Single filer) plus 6.2% Social Security up to the SSA 2026 wage base of $184,500, plus 1.45% Medicare, plus the most recently verified state rate. It does not include local taxes, pre-tax 401(k)/HSA, or W-4 dependents. For precise per-paycheck numbers, use the Gross to Net Paycheck Calculator linked below.

How does an hourly worker get paid sick / vacation time?

Depends on employer and state. Most US workers do not have a federal right to paid leave, but several states (CA, CO, MA, NJ, NY, OR, RI, WA, AZ, MD, MI, NM, VT, MN, IL, ME, NV, MT, CT, DC, SC for state employees) require paid sick leave. Check your state labor agency. PayslipIQ does not include sick/vacation accrual in this conversion.

Is hourly or salary better?

Different trade-offs. Hourly: overtime pay (FLSA non-exempt), more predictable per-hour earnings, less likely to get unpaid extra hours. Salary: usually exempt from overtime, often comes with paid vacation, often more job stability. Whether you "make more" depends on actual hours worked. A salaried role at $52k working 50 hours/week is effectively $20/hour; a $25/hour role doing 40 hours is also $52k but you keep the extra hours.

Frequently asked questions

How do you convert hourly to annual salary?: Multiply hourly rate by hours per week by weeks worked per year. The standard assumption is 40 hours and 52 weeks (2,080 hours), giving annual salary = hourly × 2,080. If you take unpaid time off, drop the weeks (e.g. 50 weeks for 2 weeks unpaid PTO). PayslipIQ adjusts on the fly so the answer reflects your actual schedule.
Why does $25/hour come out as ~$52,000 a year, not $50,000?: $25 × 40 hours × 52 weeks = $52,000. The often-quoted "$50k = $25/hour" rule of thumb assumes 50 weeks worked (i.e. 2 weeks unpaid vacation). Both are right; the difference is whether you are paid for vacation weeks or not. Salaried employees usually are; many hourly workers are not.
Does this handle overtime?: Yes. The optional overtime block adds (overtime hours per week × hourly rate × multiplier × weeks) to the base. Federal FLSA standard is 1.5x for hours over 40 per week. California, Alaska, Nevada, Colorado, and a few others have daily overtime rules (>8 hours/day at 1.5x, >12 at 2x). The calculator uses your chosen multiplier on the weekly overtime hours you enter.
Are part-time and gig hours included?: Yes. Enter whatever weekly hours you actually work. 20 hours/week × 52 weeks at $25/hour = $26,000 annual. The math is the same; the tax estimate scales accordingly.
What about taxes?: The right-hand panel runs an annualised estimate using the IRS Pub 15-T 2026 percentage method (Single filer) plus 6.2% Social Security up to the SSA 2026 wage base of $184,500, plus 1.45% Medicare, plus the most recently verified state rate. It does not include local taxes, pre-tax 401(k)/HSA, or W-4 dependents. For precise per-paycheck numbers, use the Gross to Net Paycheck Calculator linked below.
How does an hourly worker get paid sick / vacation time?: Depends on employer and state. Most US workers do not have a federal right to paid leave, but several states (CA, CO, MA, NJ, NY, OR, RI, WA, AZ, MD, MI, NM, VT, MN, IL, ME, NV, MT, CT, DC, SC for state employees) require paid sick leave. Check your state labor agency. PayslipIQ does not include sick/vacation accrual in this conversion.
Is hourly or salary better?: Different trade-offs. Hourly: overtime pay (FLSA non-exempt), more predictable per-hour earnings, less likely to get unpaid extra hours. Salary: usually exempt from overtime, often comes with paid vacation, often more job stability. Whether you "make more" depends on actual hours worked. A salaried role at $52k working 50 hours/week is effectively $20/hour; a $25/hour role doing 40 hours is also $52k but you keep the extra hours.

Calculator

Hourly to salary, in plain English.

Convert any hourly rate into weekly, biweekly, monthly, and annual salary, with optional overtime and an after-tax estimate.

Reviewed by PayslipIQ Editorial Team, in-house payroll editor

Last reviewed May 2026 · Editorial standards

In plain English

Annual salary equals hourly rate × hours per week × weeks worked per year. The standard 40-hour week × 52 weeks = 2,080 hours, so $25/hour = $52,000 a year. PayslipIQ's Hourly to Salary Calculator (USA, 2026) lets you set your real hours, real working weeks (account for unpaid time off), and add overtime, then estimates take-home pay using the IRS Pub 15-T 2026 percentage method, FICA, and your state rate. Educational only, not advice. Use the Gross to Net Paycheck Calculator for precise per-paycheck figures.

Gross conversions

Hourly

$25.00

Daily (8h)

$200

Weekly

$1000

Biweekly

$2000

Monthly

$4333

Annual

$52000

Net (after estimated tax)

Annual gross	$52000
Federal income tax (est.)	−$5467
Social Security (6.2%)	−$3224
Medicare (1.45%)	−$754
State tax (est.)	−$3432
Annual take-home	$39123
Net per month (avg)	$3260
Net per biweekly check	$1505
Effective tax rate	24.8%

Single filer assumption. State tax uses each state's flat or top-marginal rate verified 2026-05-06. Pre-tax 401(k), HSA, FSA, health premiums, and W-4 dependents are not modelled here. For precise per-paycheck numbers use theGross to Net Paycheck Calculator.

Common hourly to salary conversions

At 40 hours per week and 52 weeks per year (2,080 hours), no overtime.

Hourly	Weekly	Biweekly	Monthly	Annual
$10	$400	$800	$1733	$20,800
$12	$480	$960	$2080	$24,960
$15	$600	$1200	$2600	$31,200
$18	$720	$1440	$3120	$37,440
$20	$800	$1600	$3467	$41,600
$22	$880	$1760	$3813	$45,760
$25	$1000	$2000	$4333	$52,000
$30	$1200	$2400	$5200	$62,400
$35	$1400	$2800	$6067	$72,800
$40	$1600	$3200	$6933	$83,200
$50	$2000	$4000	$8667	$104,000
$60	$2400	$4800	$10400	$124,800
$75	$3000	$6000	$13000	$156,000
$100	$4000	$8000	$17333	$208,000
$150	$6000	$12000	$26000	$312,000

Worked example, $30/hour, 45 hours/week, California

$30/hour, 40 base hours plus 5 overtime hours per week at 1.5x, 52 weeks, single filer, California.

Base annual: $30 × 40 × 52 = $62,400. Overtime annual: 5 × $30 × 1.5 × 52 = $11,700. Total gross: $74,100. Federal (IRS Pub 15-T 2026 percentage method, single, Step 2 unchecked): ~$10,329. Social Security 6.2%: $4,594. Medicare 1.45%: $1,074. California state tax (~6.6% effective): ~$4,891. Total tax: ~$20,888. Annual take-home: ~$53,212. Effective tax rate: ~28.2%.

Single-filer assumption with no pre-tax 401(k), no HSA, no dependents, and no local tax. Adding a 5% 401(k) contribution would lift take-home roughly $410 (because the deferral reduces federal tax) but reduce the net paycheck because $3,705 a year goes into the retirement account.

Common questions

How do you convert hourly to annual salary?: Multiply hourly rate by hours per week by weeks worked per year. The standard assumption is 40 hours and 52 weeks (2,080 hours), giving annual salary = hourly × 2,080. If you take unpaid time off, drop the weeks (e.g. 50 weeks for 2 weeks unpaid PTO). PayslipIQ adjusts on the fly so the answer reflects your actual schedule.
Why does $25/hour come out as ~$52,000 a year, not $50,000?: $25 × 40 hours × 52 weeks = $52,000. The often-quoted "$50k = $25/hour" rule of thumb assumes 50 weeks worked (i.e. 2 weeks unpaid vacation). Both are right; the difference is whether you are paid for vacation weeks or not. Salaried employees usually are; many hourly workers are not.
Does this handle overtime?: Yes. The optional overtime block adds (overtime hours per week × hourly rate × multiplier × weeks) to the base. Federal FLSA standard is 1.5x for hours over 40 per week. California, Alaska, Nevada, Colorado, and a few others have daily overtime rules (>8 hours/day at 1.5x, >12 at 2x). The calculator uses your chosen multiplier on the weekly overtime hours you enter.
Are part-time and gig hours included?: Yes. Enter whatever weekly hours you actually work. 20 hours/week × 52 weeks at $25/hour = $26,000 annual. The math is the same; the tax estimate scales accordingly.
What about taxes?: The right-hand panel runs an annualised estimate using the IRS Pub 15-T 2026 percentage method (Single filer) plus 6.2% Social Security up to the SSA 2026 wage base of $184,500, plus 1.45% Medicare, plus the most recently verified state rate. It does not include local taxes, pre-tax 401(k)/HSA, or W-4 dependents. For precise per-paycheck numbers, use the Gross to Net Paycheck Calculator linked below.
How does an hourly worker get paid sick / vacation time?: Depends on employer and state. Most US workers do not have a federal right to paid leave, but several states (CA, CO, MA, NJ, NY, OR, RI, WA, AZ, MD, MI, NM, VT, MN, IL, ME, NV, MT, CT, DC, SC for state employees) require paid sick leave. Check your state labor agency. PayslipIQ does not include sick/vacation accrual in this conversion.
Is hourly or salary better?: Different trade-offs. Hourly: overtime pay (FLSA non-exempt), more predictable per-hour earnings, less likely to get unpaid extra hours. Salary: usually exempt from overtime, often comes with paid vacation, often more job stability. Whether you "make more" depends on actual hours worked. A salaried role at $52k working 50 hours/week is effectively $20/hour; a $25/hour role doing 40 hours is also $52k but you keep the extra hours.

Related tools

Salary to Hourly

Reverse: convert annual salary into an hourly equivalent.

Gross to Net Paycheck

Per-paycheck precision with 401(k), HSA, dependents.

Overtime Calculator

FLSA federal + state daily overtime.

Salary After Tax

Period-by-period view of any annual salary.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.