If you’re paid by the hour, it’s helpful to understand how your wage translates to an annual salary. Whether you’re budgeting for the year, comparing a job offer, or negotiating a raise, converting hourly to salary gives you a bigger picture of your income.
The basic formula to convert your hourly wage to an annual salary is:
Hourly Wage × Hours per Week × 52 Weeks per Year
Example: $20/hour × 40 hours/week × 52 weeks = $41,600 per year
Note: This assumes you work every week of the year. If you take unpaid time off or have seasonal work, your annual income will be lower.
Your exact yearly earnings depend on:
Alex works as a graphic designer making $28 per hour, working 38 hours per week. His estimated salary is:
$28 × 38 hours/week × 52 weeks = $55,328 per year
However, Alex usually takes 2 weeks of unpaid vacation, so his actual yearly pay is slightly lower.
Skip the math and get your results instantly. Use our free Hourly to Salary Calculator to estimate your annual pay based on your hourly rate and work schedule.
For minimum wage and labor law information, visit the U.S. Department of Labor’s Minimum Wage page.