The basic formula and why it's incomplete
The standard conversion is straightforward: Hourly Rate × Hours per Week × 52 = Annual Salary. But "52 weeks" assumes you work every single week of the year with no vacation, no sick days, and no holidays. In reality, most workers take 10 to 25 days off per year, which changes the real number.
If you're comparing a job offer quoted as an hourly rate against one quoted as a salary, you need to account for the benefits gap too. A $52,000 salary usually comes with health insurance, PTO, and retirement matching. A $25/hour contract position might pay the same gross amount but require you to cover those benefits yourself — effectively making it worth less. Our hourly vs salary comparison breaks this down in detail.
Hourly to annual conversion table
| Hourly Rate | Weekly (40 hrs) | Monthly | Annual |
|---|---|---|---|
| $15.00 | $600 | $2,600 | $31,200 |
| $20.00 | $800 | $3,467 | $41,600 |
| $25.00 | $1,000 | $4,333 | $52,000 |
| $30.00 | $1,200 | $5,200 | $62,400 |
| $35.00 | $1,400 | $6,067 | $72,800 |
| $40.00 | $1,600 | $6,933 | $83,200 |
| $50.00 | $2,000 | $8,667 | $104,000 |
How overtime changes everything
Under the Fair Labor Standards Act (FLSA), non-exempt employees earn 1.5× their regular rate for hours worked beyond 40 per week. This significantly impacts the conversion.
📊 Impact of regular overtime on annual income ($20/hour)
Those 5 extra hours per week at time-and-a-half add $7,800 annually — an 18.8% increase from the base calculation. See our overtime calculation guide for the full math.
The benefits adjustment most people forget
When comparing an hourly position to a salaried one, adjust for the value of benefits. A typical full-time benefits package adds 25-40% on top of the base salary in total compensation value:
Health insurance: $6,000-$12,000/year employer contribution. Retirement match: 3-6% of salary ($1,500-$5,000). Paid time off: 10-20 days ($2,000-$5,000 equivalent). Other benefits: Life insurance, disability, tuition reimbursement ($1,000-$3,000).
A salaried position at $52,000 with full benefits has a total compensation value of roughly $65,000-$72,800. If you're comparing that to a $25/hour contract position ($52,000 gross) with no benefits, the salary offer is substantially more valuable. Use the take-home pay guide to factor in deductions and taxes.
What your hourly rate means for take-home pay
Annual salary is gross income. After federal tax, state tax, Social Security, and Medicare, your take-home is typically 65-80% of gross, depending on your tax bracket and state. Here's what common hourly rates translate to in actual take-home per paycheck (bi-weekly, single filer, medium-tax state):
📊 Approximate bi-weekly take-home (single filer, ~5% state tax)
Use the paycheck calculator for a precise breakdown based on your specific tax situation.
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