Converting an hourly wage to a yearly salary starts with a simple assumption: a standard full-time schedule of 40 hours per week for 52 weeks equals 2,080 hours per year.
The Basic Formula
Hourly rate x 2,080 = gross annual pay for a steady 40-hour week. For example, $20 per hour x 2,080 = $41,600 per year before taxes.
What Changes the Real Number
- Overtime: Hours over 40 are typically paid at 1.5x under the FLSA for eligible employees, raising actual pay.
- Part-time or variable schedules: Use your real weekly hours, not 40.
- Taxes: The conversion shows gross pay; take-home is lower after federal, state, and payroll taxes.
- Unpaid time off: Missed weeks reduce the annual total.
From Gross to Take-Home
Once you have a gross annual figure, use our Take-Home Pay Calculator to estimate what remains after taxes.