Job ads love quoting hourly rates: "$22 an hour!" Sounds concrete — but is that a $45,000 job or a $35,000 one? The answer depends on hours, overtime and paid time off. Here's how to convert an hourly wage to weekly, monthly and yearly pay, and how to compare an hourly offer against a salaried one fairly.
How many working hours are in a standard year for salary calculations?
The standard assumption is 40 hours a week × 52 weeks = 2,080 hours a year. Multiply any hourly rate by 2,080 and you get its full-time annual equivalent. At $20/hour that's $41,600 a year.
It's an approximation — most full-time workers get 2–4 weeks off — but it's the number employers, lenders and mortgage underwriters use, so it's the right yardstick for comparing offers.
How much is $20 an hour annually?
| Hourly rate | Weekly (40 hrs) | Monthly (avg) | Annual (2,080 hrs) |
|---|---|---|---|
| $15/hr | $600/wk | $1,950/mo | $31,200/yr |
| $18/hr | $720/wk | $2,340/mo | $37,440/yr |
| $20/hr | $800/wk | $2,600/mo | $41,600/yr |
| $25/hr | $1,000/wk | $3,250/mo | $52,000/yr |
| $30/hr | $1,200/wk | $3,900/mo | $62,400/yr |
| $35/hr | $1,400/wk | $4,550/mo | $72,800/yr |
The monthly figure assumes an even 1/12 split; in reality some months have more working days than others, but the average is what budgets and landlords care about.
How does paid time off affect your annual hourly pay equivalent?
Two "$25/hour" jobs can differ by thousands:
- Job A: 2 weeks unpaid vacation — you actually work 2,000 hours: $50,000 a year.
- Job B: 4 weeks paid vacation — you get 2,080 paid hours plus the time off: $52,000 a year.
A salaried offer that looks smaller can win once you price in guaranteed paid leave, sick days and holidays. When an hourly job has no PTO, knock roughly 4–8% off its annual equivalent for a fair comparison.
How much extra income does overtime add to annual salary?
In the US, most hourly workers must be paid 1.5× after 40 hours a week. Just 5 overtime hours a week at $25/hour adds 25 × 1.5 × 5 × 52 = $9,750 a year — nearly a 19% raise over the base $52,000.
Salaried (exempt) workers typically get nothing extra for a 50-hour week. A $60,000 salary worked at 50 hours/week is an effective $23/hour — below what a $30/hour hourly worker earns for the same time. To see the take-home difference after taxes for any salary figure, run it through the paycheck calculator.
Is an hourly pay rate or fixed annual salary better?
Hourly advantages: overtime pay, and (depending on contract) extra pay for holidays and weekends. Income scales with hours worked.
Salary advantages: stable, predictable pay — which matters for mortgages and budgeting — plus usually stronger benefits, PTO and progression into management.
Rule of thumb: compare on effective hourly rate — total annual pay divided by total hours actually worked, including the unpaid extras. That single number makes any two offers honest with each other.
How do you calculate your annual salary from an hourly wage?
Frequently asked questions
How much is $20 an hour per year working full-time?
At $20 per hour working a standard full-time schedule of 40 hours per week over 52 weeks (2,080 total hours), your annual gross salary is $41,600 before taxes. This equals approximately $800 in gross pay per week and an average monthly pay of $2,600.
How do you calculate annual salary from an hourly rate?
To calculate annual salary, multiply your hourly wage by the number of hours worked per week, then multiply by 52 weeks. Using the standard full-time baseline of 40 hours per week (2,080 annual hours), a $25 hourly rate converts to $52,000 in gross annual pay.
How does paid time off affect your annual hourly salary equivalent?
In a job with 2 weeks of unpaid vacation, you work 2,000 hours annually, earning $50,000 at $25 per hour. When paid time off covers 2,080 hours, total annual pay is $52,000. Unpaid time off effectively reduces annual gross earnings by roughly 4% to 8%.
How much extra income do overtime hours add per year?
Under US labor rules, hourly workers earn 1.5 times their regular wage for hours worked over 40 per week. Working 5 overtime hours weekly at a base rate of $25 per hour adds $9,750 annually, raising gross annual pay from $52,000 to $61,750.
Our hourly to salary calculator does all of this instantly: enter your rate and hours, and it shows weekly, biweekly, monthly and annual figures, including overtime options. Then check what the salary is worth after tax with the US paycheck calculator or the UK salary calculator for British readers comparing a £/hour rate.
See the full breakdowns for $20 an hour and $25 an hour a year, after taxes.