Converting an hourly rate to an annual salary is one of the most common calculations job seekers and employees need to make. Whether you're comparing job offers, negotiating pay, or simply trying to budget for the year, knowing your annual income is essential.

The basic formula

The standard conversion is straightforward:

Annual salary = Hourly rate × Hours per week × Weeks per year
For a standard full-time worker: Hourly rate × 40 × 52

Common examples

Hourly rateWeekly (40h)MonthlyAnnual
$15/hr$600$2,600$31,200
$20/hr$800$3,467$41,600
$25/hr$1,000$4,333$52,000
$35/hr$1,400$6,067$72,800
$50/hr$2,000$8,667$104,000

How to calculate monthly salary

Monthly salary is typically calculated as annual salary divided by 12. This is the most common method used by employers. Some calculations use 4.33 weeks per month (52 ÷ 12), which gives slightly different results — both are acceptable.

Part-time and variable schedules

If you work part-time or have a variable schedule, adjust the hours per week or weeks per year accordingly. For example, if you work 30 hours per week for 48 weeks per year at $20/hr: 20 × 30 × 48 = $28,800 annual salary.

Including overtime

If you regularly work overtime, add it to your calculation. Standard overtime is paid at 1.5× your regular rate. If you work 5 overtime hours per week at $20/hr: overtime earnings = 5 × $30 × 52 = $7,800 extra per year.

Use our calculator: Our Hourly Salary Calculator handles all of this automatically — regular hours, overtime, custom schedules, and multiple currencies.