How to Convert Hourly to Salary: The Complete Guide
In this article
Converting an hourly wage to an annual salary is one of the most common calculations workers need — whether you're comparing a job offer, planning a budget, or negotiating compensation. The basic formula is straightforward, but getting to your actual take-home pay requires a few more steps that most quick calculators skip.
The Basic Conversion Formula
The standard hourly-to-annual conversion assumes full-time employment:
Annual Salary = Hourly Rate × Hours Per Week × Weeks Per Year
For a standard full-time schedule: Hourly rate × 40 hours × 52 weeks
This gives you gross annual salary — your earnings before any taxes or deductions are taken out.
Useful variations
- Monthly gross: Annual ÷ 12
- Bi-weekly gross (every two weeks): Hourly rate × 80 hours (most common paycheck schedule for salaried employees)
- Semi-monthly gross (twice a month): Annual ÷ 24
- Weekly gross: Hourly rate × 40 (or your actual hours)
Quick Reference: Common Hourly Rates to Annual Salary
| Hourly Rate | Annual (40h/52wk) | Monthly Gross | Bi-Weekly Gross |
|---|---|---|---|
| $12.00 | $24,960 | $2,080 | $960 |
| $15.00 | $31,200 | $2,600 | $1,200 |
| $18.00 | $37,440 | $3,120 | $1,440 |
| $20.00 | $41,600 | $3,467 | $1,600 |
| $22.00 | $45,760 | $3,813 | $1,760 |
| $25.00 | $52,000 | $4,333 | $2,000 |
| $28.00 | $58,240 | $4,853 | $2,240 |
| $30.00 | $62,400 | $5,200 | $2,400 |
| $35.00 | $72,800 | $6,067 | $2,800 |
| $40.00 | $83,200 | $6,933 | $3,200 |
| $45.00 | $93,600 | $7,800 | $3,600 |
| $50.00 | $104,000 | $8,667 | $4,000 |
Estimating Take-Home Pay After Taxes
Gross salary is what you earn. Take-home pay (net pay) is what you actually receive after taxes and mandatory deductions. The difference is typically 20–35% of gross income for most workers, depending on income level, filing status, and state.
Three categories of deductions reduce every paycheck:
1. Federal income tax
The U.S. uses a progressive tax system with marginal brackets. For 2024, the brackets for single filers are:
| Taxable Income | Rate |
|---|---|
| Up to $11,600 | 10% |
| $11,601 – $47,150 | 12% |
| $47,151 – $100,525 | 22% |
| $100,526 – $191,950 | 24% |
| $191,951 – $243,725 | 32% |
| $243,726 – $609,350 | 35% |
| Over $609,350 | 37% |
The standard deduction for single filers in 2024 is $14,600. This amount is subtracted from your gross income before the brackets are applied, so a $52,000 gross income has $37,400 in taxable income ($52,000 − $14,600).
2. FICA taxes (Social Security and Medicare)
FICA taxes are flat percentages taken from every paycheck, with no deductions or brackets:
- Social Security: 6.2% on wages up to $168,600 (2024 wage base)
- Medicare: 1.45% on all wages (no cap)
- Combined FICA rate: 7.65% on most workers' wages
3. State income tax
Varies from 0% (Texas, Florida, and 7 other states) to over 13% (California top bracket). Our calculator uses estimated average effective rates for each state, which you can override with your actual rate.
Take-home example: $25/hour in Georgia (single filer, 2024)
- Annual gross: $25 × 40 × 52 = $52,000
- Federal taxable income: $52,000 − $14,600 = $37,400
- Federal tax: 10% × $11,600 + 12% × $25,800 = $1,160 + $3,096 = $4,256
- FICA: $52,000 × 7.65% = $3,978
- Georgia state tax (~5.49% effective): $52,000 × 5.49% = $2,855
- Estimated annual take-home: $52,000 − $4,256 − $3,978 − $2,855 = $40,911
- Monthly take-home: ~$3,409
The gross-to-net difference is about 21.3% at this income level in Georgia. Use our calculator above to run this for your own rate and state.
Common Calculation Mistakes
- Using 2,080 hours for everyone. 40 hours × 52 weeks = 2,080 hours is the standard, but it does not account for unpaid leave, sick days, or shorter schedules. If you realistically work 48 weeks, use 1,920 hours.
- Confusing marginal and effective tax rates. Your marginal rate (the rate on your highest dollar of income) is not your overall tax rate. For a $52,000 gross single filer in 2024, the marginal federal rate is 22% but the effective rate is about 8.2%. These are very different numbers.
- Forgetting FICA. Many "quick" tax estimators only show income tax. FICA taxes add another 7.65% to your tax burden and are unavoidable for most workers.
- Using gross pay for budgeting. Always budget from your estimated net (take-home) pay, not gross salary. Planning a monthly budget from $4,333/month ($52k gross ÷ 12) when your actual take-home is closer to $3,400/month creates a budget that doesn't work in practice.
Part-Time and Variable Hours Calculations
For part-time or variable schedules, replace "40 hours/week" and "52 weeks/year" with your actual averages:
- 20 hours/week (half-time): Hourly rate × 20 × 52 = annual gross
- Seasonal work (e.g., 30 weeks/year): Hourly rate × hours/week × 30
- Variable hours: Track 8–12 weeks of actual hours, calculate an average, then multiply by 52 (or your expected working weeks)
For variable-income workers, it's wise to run three scenarios — a conservative estimate (your low weeks), a typical estimate (your average), and an optimistic estimate (a good stretch) — and budget from the conservative number.
Practical Use Cases
- Evaluating a job offer: Convert the offered hourly rate to annual gross and then to estimated net take-home. Compare to your current take-home, not just the gross numbers.
- Salary negotiation: Know your current hourly equivalent so you can compare it directly to any salaried counteroffer. (Salaried offer ÷ 2,080 gives the per-hour equivalent at a standard schedule.)
- Freelance rate setting: Calculate what hourly rate you'd need to match the net take-home of a comparable W-2 job, then add 15–20% to cover the employer-side FICA taxes you now pay yourself plus benefits you self-fund.
- Budgeting: Use the monthly take-home figure to build a realistic budget aligned with actual cash flow.