Work formula
Hourly to Salary Formula
Learn how hourly rate, hours per week and working weeks per year combine into estimated annual gross pay.
Formula
Annual gross pay = hourly rate × hours per week × working weeks per yearWhat the formula means.
Multiply the hourly wage by the typical number of paid hours each week, then multiply by the number of paid working weeks represented in the year.
This is gross pay before deductions unless stated otherwise.
Unpaid time off reduces the number of working weeks.
Overtime rules may require a separate calculation.
Variables.
HHourly rate
Gross pay for one paid hour.
WHours per week
Typical paid weekly hours.
YWorking weeks
Paid working weeks represented in the year.
Worked example.
$25/hour, 40 hours, 52 weeks
- $25 × 40 = $1,000 per week
- $1,000 × 52 = $52,000
Try your own numbersHourly to Salary Calculator
↗Common mistakes.
- Assuming 52 fully paid weeks when unpaid leave applies.
- Treating gross annual pay as take-home pay.
- Ignoring variable weekly hours.
Quick questions.
What is the shortcut for a 40-hour, 52-week schedule?
There are 2,080 hours in that schedule, so multiply the hourly rate by 2,080.
Does this include overtime?
Not automatically. Overtime should be modeled separately when the rate changes after a threshold.