Quick answer: To convert an hourly wage to a yearly salary, multiply the rate by the hours worked per week and the paid weeks per year. A full-time job is usually 40 hours for 52 weeks, or 2,080 hours, so $25 an hour is $52,000 a year, $4,333.33 a month, $1,000 a week and $200 a day before tax.
Job offers, freelance rates and payslips all quote pay in different ways. One employer says $25 an hour, another says $52,000 a year, a contract says $2,000 every two weeks. This calculator puts them on the same footing so you can compare offers and check a payslip.
The result depends on how many hours you actually work and how many weeks you are paid. Everything is adjustable, so you can model a part-time job, a four-day week, or a year with unpaid holiday.
How the conversion works
Everything is converted to a yearly figure first, then divided out again:
Monthly = yearly ÷ 12
Every two weeks = yearly ÷ (weeks ÷ 2)
Weekly = yearly ÷ paid weeks
Daily = weekly ÷ days per week
Hourly = weekly ÷ hours per week
Pay shown here is gross, meaning before income tax, social security and other deductions. Your take-home pay will be lower, and how much lower depends on where you live.
A worked example
Example. A job paying $25 an hour for 40 hours a week over 52 weeks earns $52,000 a year. That is $4,333.33 a month, $2,000 every two weeks, $1,000 a week and $200 a day, all before tax.
Common hourly rates as a yearly salary
| Hourly rate | Yearly | Monthly | Daily (8 hours) |
|---|---|---|---|
| $15 | $31,200 | $2,600.00 | $120 |
| $20 | $41,600 | $3,466.67 | $160 |
| $25 | $52,000 | $4,333.33 | $200 |
| $30 | $62,400 | $5,200.00 | $240 |
| $40 | $83,200 | $6,933.33 | $320 |
| $50 | $104,000 | $8,666.67 | $400 |
Based on 40 hours a week for 52 paid weeks (2,080 hours a year). Figures are before tax.
Common mistakes to avoid
- Assuming 52 weeks when part of the year is unpaid. Change the paid weeks so the yearly figure matches what you will actually receive.
- Comparing gross pay with take-home pay. Tax, insurance and pension deductions change the figure you spend.
- Forgetting unpaid breaks. If your 40-hour week includes unpaid lunch, the paid hours are lower.
Frequently asked questions
How do I convert an hourly wage to a yearly salary?
Multiply your hourly rate by the hours you work each week, then by the number of paid weeks in the year. For a full-time job that is usually 40 hours and 52 weeks, which is 2,080 hours.
Is this before or after tax?
Before tax. It shows gross pay. Tax rules differ by country and region, so use a payslip or an official tax calculator for take-home pay.
Why does the monthly figure not equal four weekly pays?
A year has 52 weeks, which is 4.33 weeks per month on average. Four weekly payments would only add up to 48 weeks, so monthly pay is worked out as yearly pay divided by 12.
What if I get paid holidays?
Paid holiday counts as paid time, so keep the weeks at 52. Reduce the weeks only for time off that you are not paid for.
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Sources and further reading
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