Hourly to Annual Salary Conversion Guide 2026
Converting an hourly wage to a yearly salary starts with a simple assumption: a standard full-time schedule of 40 hours per week for 52 weeks equals 2,080 hours per year.
The Basic Formula
Hourly rate x 2,080 = gross annual pay for a steady 40-hour week. For example, $20 per hour x 2,080 = $41,600 per year before taxes.
What Changes the Real Number
- Overtime: Hours over 40 are typically paid at 1.5x under the FLSA for eligible employees, raising actual pay.
- Part-time or variable schedules: Use your real weekly hours, not 40.
- Taxes: The conversion shows gross pay; take-home is lower after federal, state, and payroll taxes.
- Unpaid time off: Missed weeks reduce the annual total.
From Gross to Take-Home
Once you have a gross annual figure, use our Take-Home Pay Calculator to estimate what remains after taxes.
- U.S. Bureau of Labor Statistics
- Fair Labor Standards Act (FLSA)
All figures are estimates based on publicly available data. Use the linked calculators to model your own situation.
Frequently Asked Questions
How many hours are in a work year?▼
A standard 40-hour week for 52 weeks is 2,080 hours, the usual base for full-time salary conversion.
Does the conversion include taxes?▼
No. It shows gross pay. Taxes and deductions reduce take-home pay below the converted amount.
How does overtime affect it?▼
Eligible overtime is generally paid at 1.5x, so actual annual pay can exceed the simple conversion.