Hourly to Annual Salary Calculator 2025
Converting between hourly and annual — for job comparisons or budgeting.
Convert your hourly wage to an annual salary equivalent in United States. Adjust for actual hours per week. Also shows monthly, weekly, and daily pay.
Based on 40hr/week, 52 weeks/year. Adjust in Standard mode for actual hours.
How to convert hourly to annual salary US
Convert hourly wage to annual salary by multiplying by hours worked and weeks. Adjustments needed for overtime, unpaid time off, FICA, federal and state taxes.
Core formula
Annual salary = Hourly rate × Hours/week × Weeks/year. Full-time (40 hrs × 52 weeks) = 2,080 hrs/yr. $20/hr × 2,080 = $41,600/yr. Part-time (20 hrs × 52) = 1,040 hrs. $20 × 1,040 = $20,800.
The 2,080 hours shortcut
US recruiters use: Hourly rate × 2,080 = annual salary. $25 × 2,080 = $52,000. Works for standard 40-hour weeks. For 35-hour weeks use 1,820; for 37.5 use 1,950.
From gross to net (take-home)
Federal income tax (10-37% progressive). FICA (7.65%: 6.2% SS + 1.45% Medicare). State income tax (0-13.3%). Local income tax (some cities). 401(k) pre-tax contributions reduce federal/state tax.
FLSA overtime rules
Non-exempt employees: 1.5x rate over 40 hrs/week. $20/hr base, 5 hrs OT/week at $30 = $150 extra × 52 = $7,800/yr OT. Exempt (salaried, above $58,656 threshold): no OT required.
US hourly rate to salary conversion 2025
Full-time (40 hrs × 52 weeks = 2,080 hrs)
| Hourly rate | Annual gross | Monthly | Net TX | Net CA |
|---|---|---|---|---|
| $7.25 (federal min) | $15,080 | $1,257 | $13,770 | $13,580 |
| $15/hr | $31,200 | $2,600 | $27,050 | $26,350 |
| $20/hr | $41,600 | $3,467 | $34,850 | $33,700 |
| $25/hr | $52,000 | $4,333 | $42,850 | $41,100 |
| $30/hr | $62,400 | $5,200 | $50,500 | $48,300 |
| $40/hr | $83,200 | $6,933 | $65,400 | $61,700 |
| $50/hr | $104,000 | $8,667 | $78,700 | $73,500 |
| $75/hr | $156,000 | $13,000 | $111,800 | $102,600 |
| $100/hr | $208,000 | $17,333 | $144,100 | $130,400 |
Part-time (20 hrs × 52 weeks)
| Hourly rate | Annual gross | Monthly gross |
|---|---|---|
| $15/hr | $15,600 | $1,300 |
| $25/hr | $26,000 | $2,167 |
| $40/hr | $41,600 | $3,467 |
US federal and state minimum wages 2025
Federal and key state minimums
| Jurisdiction | Min wage 2025 | Annual FT |
|---|---|---|
| Federal (tipped $2.13) | $7.25 | $15,080 |
| Washington | $16.66 | $34,653 |
| California | $16.50 | $34,320 |
| New York (NYC) | $16.50 | $34,320 |
| Massachusetts | $15.00 | $31,200 |
| Colorado | $14.81 | $30,805 |
| Illinois | $15.00 | $31,200 |
| Florida | $13.00 | $27,040 |
| Texas, Alabama, etc. | $7.25 (federal) | $15,080 |
Tipped minimum wage
Federal tipped: $2.13/hr cash + tips must total $7.25+/hr. Many states require full minimum for tipped workers (CA, OR, WA, MT, MN, AK, NV, HI). California: tipped must receive full $16.50 cash wage plus tips kept separately.
Local minimum wages
Many cities exceed state: Seattle $20.76, San Francisco $18.67, NYC fast food $16.50 ($17 delivery workers). Check local ordinances — they apply when higher than state/federal.
US overtime pay and exemption thresholds
FLSA overtime threshold 2025
Salaried exempt (no OT required): must earn at least $58,656/year ($1,128/week) under 2024 DOL rule. Originally was to rise to $66,000 January 2025 but was enjoined by federal court — current threshold is $35,568. Legal landscape evolving.
Non-exempt overtime calculation
1.5x rate over 40 hours per week. Example: $20/hr base, 8 hrs OT = $30 × 8 = $240 extra. Some states require daily overtime (CA: over 8 hrs/day). Not required to pay double time federally.
California double-time rules
Unique: 1.5x after 8 hrs/day or 40 hrs/week. Double time after 12 hrs/day. 7th consecutive day: 1.5x first 8 hrs, double after. Most complex overtime rules in US.
Bonus calculation
Non-discretionary bonuses included in overtime rate calculation. Discretionary bonuses excluded. Regular rate for OT = (all pay + bonuses) ÷ all hours worked. Adds 25-40% to payroll complexity for employers.
FAQFrequently asked questions about US hourly to salary
What's gross vs net hourly pay?
Gross is before tax. Net is after federal, state, FICA, and benefit deductions. $25/hr gross ≈ $18-20/hr net (varies by state). FICA alone is 7.65%.
How to compare salary offer to hourly rate?
Divide annual salary by hours per year (usually 2,080). $60k salary = $28.85/hr. Add benefits value: health insurance ($5-10k), 401(k) match ($3-6k), PTO (2-4 weeks value).
Is $20/hr a good wage US?
$20/hr = $41,600/yr full-time. Below median household income ($75k) but above median individual income ($40k). Livable in low-cost states (TX, OK); tight in high-cost states (CA, NY).
Does overtime count for annual salary?
Yes — regular OT pay should be included. $50k base + $10k OT = $60k effective annual income. Banks count consistent OT in mortgage pre-approval (often at 50-75% for stability).
What's $50,000 salary hourly US?
$50,000 ÷ 2,080 hours = $24.04/hr. At 37.5 hrs/week: $25.64/hr. Take-home: ~$41,500/year (TX) or ~$39,800 (CA).
Where these figures come from
Income figures on this page are drawn from The IRS (tax treatment), the Social Security Administration (payroll tax base), and the US Bureau of Labor Statistics (national earnings data).
- Federal income tax brackets — IRS — Federal Income Tax Rates and Brackets.
- FICA payroll tax (6.2% + 1.45%) — IRS Topic 751 — SS & Medicare Withholding.
- SS wage base & 2025 COLA — SSA — Contribution and Benefit Base.
- National wage & earnings data — BLS — Wages.
- Federal minimum wage — US Department of Labor — Minimum Wage.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the income breakdown based on the salary, hours, or payment details you entered — using current tax rates and standard employment conditions.
Use this to compare job offers, understand your effective hourly rate, or see how a pay rise flows through to take-home pay. Adjust inputs to model different scenarios.
Not a payslip or employer commitment. Actual pay depends on your specific employment agreement, deductions, and employer calculations.
Uses current tax rates and standard employment conditions. All calculations run in your browser — no data is sent to any server.
Income calculations are driven by gross pay, tax bracket, and any pre-tax benefits or deductions. The gap between gross and net widens as income rises due to progressive tax rates.
The difference between your gross salary and take-home pay reflects federal income tax, FICA (Social Security and Medicare), and any student loan payments. Higher income means a larger percentage goes to tax.
For hourly workers, overtime rates, casual loading (typically 25%), and penalty rates significantly affect the effective annual income.
Pre-tax 401(k) contributions or other pre-tax benefitsexempt packaging reduces taxable income — changing the effective tax rate and take-home split.
To improve your income position, focus on reducing tax drag, negotiating better terms, or restructuring how you receive compensation.
Consider super, leave loading, flexible work, and pre-tax benefits as part of total compensation — not just base salary.
Directing pre-tax income to super or other concessional items reduces your tax bill and increases effective compensation.
Converting salary to an hourly rate (or vice versa) helps compare roles with different structures on a like-for-like basis.
Income connects to tax, super, and budgeting decisions. Use these calculators to see the full picture.
See the full tax breakdown including Medicare, offsets, and effective tax rate.
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Pay rise calculator →Use your take-home pay to build a monthly budget and identify surplus for saving or debt repayment.
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