Hourly to Salary Converter

Converting Between Hourly Wages and Annual Salary

Whether you're evaluating a job offer, negotiating a raise, or comparing positions, knowing how to convert between hourly and annual pay is essential. A $25/hour job sounds different from a $52,000/year salary — but they're roughly the same thing.

The Basic Conversion Formula

The standard calculation assumes 40 hours per week and 52 weeks per year: Hourly Rate × 40 × 52 = Annual Salary. So $25/hour × 40 × 52 = $52,000/year. Going the other direction: Annual Salary ÷ 2,080 = Hourly Rate. So $60,000 ÷ 2,080 = $28.85/hour.

Factors That Change the Math

Vacation time: If you get 2 weeks paid vacation, your working weeks drop to 50 but your pay stays the same — effectively increasing your hourly rate. If you're hourly with no paid vacation, you actually work fewer weeks and earn less than the simple formula suggests.

Overtime: Hourly workers in the US and Canada typically earn 1.5x their rate for hours over 40/week. This can significantly boost annual earnings. Benefits: Salaried positions often include health insurance, retirement matching, and paid time off worth 20-30% on top of base salary. When comparing offers, consider the total compensation package.

Minimum Wage Reference

US Federal: $7.25/hour ($15,080/year), though most states have higher minimums. Canada Federal: $17.30/hour ($35,984/year). Many provinces are higher. When evaluating job offers, always calculate the full annual equivalent to make apples-to-apples comparisons.