How to Convert Hourly Wage to Annual Salary
The standard US full-time work schedule is 40 hours per week × 52 weeks = 2,080 hours per year. This is the IRS and Bureau of Labor Statistics standard for defining full-time equivalent employment. To convert an hourly wage to an annual salary at this standard, multiply the hourly rate by 2,080. A $25/hour rate equals a $52,000 annual salary. However, this assumes zero unpaid time off and no variation in hours — which rarely reflects reality for part-time workers, contractors, seasonal employees, or those with paid vacation policies.
This calculator lets you adjust hours per week and weeks worked per year for a precise figure. If you take 2 weeks of unpaid time off and work 50 weeks per year, multiply your hourly rate by 2,000 hours, not 2,080. If your employer provides Paid Time Off (PTO), those days count as paid working days — your annual salary equivalent remains unchanged because you receive the same hourly rate for those days. The tool also computes biweekly pay (the most common US payroll cycle — 26 pay periods/year), monthly, weekly, and daily equivalents, plus your effective earnings per minute — a useful metric for freelancers and gig workers evaluating project bids. Use this alongside the Salary-to-Hourly Calculator to compare job offers accurately — a salaried offer with mandatory overtime, unpaid lunches, or long commutes may be less competitive than it appears at face value. All calculations run locally in your browser with full privacy.
Frequently Asked Questions
The standard US full-time work year is 2,080 hours (40 hours/week × 52 weeks). However, the OPM (US Office of Personnel Management) uses 2,087 hours for federal civilian pay calculations to account for leap years. When factoring in 10 federal holidays, many US employers effectively have 2,000 billable hours per year for salaried employees. Contractors and freelancers should use billable hours — not calendar hours — for accurate income calculations.
Hourly pay qualifies for FLSA (Fair Labor Standards Act) overtime protections — 1.5× for hours over 40/week — and provides income flexibility but less predictability. Salaried positions (typically exempt from FLSA overtime) offer income stability and often include benefits packages. Salaried employees earning above the FLSA exempt threshold ($684/week or $35,568/year in 2025) are generally not entitled to overtime pay under federal law, though some states have higher thresholds.
The US federal minimum wage is $7.25/hour, unchanged since 2009 — equating to $15,080/year at 40 hours/week. However, 30+ states and many cities have set higher minimum wages. California's minimum wage is $16.50/hour ($34,320/year), Washington state is $16.66/hour, New York City is $16.50/hour, and Seattle is $20.76/hour. Always check your state and local minimum wage laws, as the higher rate prevails wherever state or local law exceeds the federal minimum.