Hourly rate to
annual salary

The Standard Hourly to Annual Conversion

The most common formula: hourly rate × 40 hours × 52 weeks = annual gross salary.

This assumes a standard 40-hour work week with no unpaid time off and no overtime. A $25/hour wage gives you $52,000 gross per year. A $50/hour wage gives you $104,000.

If you work more or fewer hours per week on average, adjust the hours field in the calculator for a more accurate result.

Gross Income vs. Take-Home Pay

The hourly × 40 × 52 formula gives you gross annual income — before any taxes. Your take-home is lower.

How much lower depends on:

• Federal income tax: Based on your bracket (10–37%)
• State income tax: 0% in seven states, up to 13.3% in California
• FICA: 7.65% for Social Security and Medicare combined

A $25/hour wage ($52,000 gross) typically leaves a single filer in a mid-tax state with around $40,000–$43,000 in take-home pay.

What Hourly Pay Does Not Include

Comparing an hourly rate to a salaried position requires accounting for more than the base math:

• Benefits: Hourly contractors often pay for their own health insurance, retirement, and time off. A comprehensive benefits package can be worth $10,000–$20,000/year.
• Overtime: If you regularly work more than 40 hours, your effective annual income is higher than the standard formula shows.
• Income stability: Salaried positions typically offer more predictable income than hourly or contract arrangements.

Frequently Asked Questions