How do you convert hourly pay to annual salary?
To convert an hourly wage into an annual gross salary, multiply your hourly rate by the number of paid hours you work per week, then multiply that weekly total by the number of paid weeks in the year:
Annual Gross Salary = Hourly Rate × Paid Hours per Week × Paid Weeks per Year
For a standard full-time schedule of 40 hours per week across 52 paid weeks (2,080 paid hours per year), a $25.00 hourly rate equals $52,000 per year before taxes and deductions ($25 × 40 × 52 = $52,000). If your job does not include paid time off and you take two weeks of unpaid vacation, multiply by 50 paid weeks instead ($25 × 40 × 50 = $50,000).
You can convert any pay rate across hourly, daily, weekly, biweekly, semi-monthly, monthly, and annual periods in the Salary Calculator. If you are converting in the opposite direction—from a fixed yearly salary down to an hourly figure—read our companion guide on converting salary to hourly pay.
Why paid vs. unpaid time off changes the calculation
The standard 2,080-hour rule (40 hours × 52 weeks) assumes you are paid for every week of the calendar year, including holidays and vacation days. Before relying on a 52-week estimate, check which of two arrangements applies to your work:
Hourly role with Paid Time Off (PTO) or statutory holiday pay: If your employer pays for your public holidays and annual vacation days at your regular hourly rate, use 52 paid weeks in the formula.
Hourly, temp, or freelance role with unpaid time off: If you are paid strictly for hours worked on the clock and receive no holiday pay, subtract every week of vacation, public holidays, and expected sick days from 52.
Worked comparison: $30/hour under three schedules (Illustrative example)
The table below shows how the same 30.00 currency units ($ / £ / C$) per hour produces different annual gross incomes depending on weekly hours and paid weeks.
| Schedule scenario | Weekly hours | Paid weeks per year | Total paid hours | Annual gross pay (at 30.00/hr) | Average monthly gross (÷ 12) |
|---|---|---|---|---|---|
| Full-time (40 hrs) with full paid leave | 40 | 52 | 2,080 | 62,400 | 5,200.00 |
| Full-time (40 hrs) with 3 weeks unpaid leave | 40 | 49 | 1,960 | 58,800 | 4,900.00 |
| Full-time (37.5 hrs) with full paid leave | 37.5 | 52 | 1,950 | 58,500 | 4,875.00 |
| Part-time (25 hrs) with 4 weeks unpaid leave | 25 | 48 | 1,200 | 36,000 | 3,000.00 |
Note: All figures are illustrative gross amounts before income tax, payroll contributions, and workplace deductions.
Country differences: US, UK, and Canada working-hour norms
Standard full-time hours, overtime rules, and paid holiday entitlements differ substantially across the United States, the United Kingdom, and Canada:
United States: A full-time workweek is typically 40 hours (2,080 hours per year). Under the federal Fair Labor Standards Act (FLSA) enforced by the U.S. Department of Labor, non-exempt hourly employees must receive overtime pay of at least 1.5 times their regular pay rate for hours worked beyond 40 in a workweek. Federal law does not mandate paid vacation or paid public holidays for private-sector workers, so verify whether your employer provides PTO.
United Kingdom: Full-time contracts commonly specify 35, 37.5, or 40 hours per week (1,820, 1,950, or 2,080 hours per year). Under GOV.UK statutory holiday entitlement rules, almost all workers are legally entitled to 5.6 weeks of paid holiday a year, but irregular-hours, part-year work and leave-pay arrangements need individual treatment; do not assume 52 identical paid weeks.
Canada: Standard full-time hours typically range from 37.5 to 40 hours per week depending on the province or industry. For federally regulated employees, Canada Labour Code guidance, describes vacation and holiday rights. Provincial or territorial rules cover many other jobs; check the regime that applies.
Gross annual pay vs. take-home pay
Converting hourly pay into an annual salary gives you gross income—the headline figure before mandatory withholdings and optional benefit deductions. Your actual net (take-home) pay will be lower after accounting for:
Income taxes: Federal, state, provincial, or local income tax brackets.
Social insurance contributions: Social Security and Medicare (FICA) in the US; National Insurance in the UK; Canada Pension Plan (CPP) and Employment Insurance (EI) in Canada.
Workplace deductions: Retirement or pension contributions (such as a 401(k), workplace pension, or RRSP), health or dental insurance premiums, and union dues.
When building a monthly spending plan, always budget from your verified net take-home pay rather than your gross annual equivalent. Once you know your realistic monthly income, see our comparison of a budget calculator vs. worksheet or learn how to compare free budgeting apps by privacy and limits.
Scope and financial note
This guide explains standard payroll arithmetic for educational comparison. It does not provide tax, legal, or individualized financial advice. Overtime eligibility, holiday pay accrual, and tax withholding depend on your contract and local jurisdiction; consult your employer's payroll documentation or a qualified tax adviser when evaluating a complex compensation package.