Convert an hourly rate to an annual salary and back.
Annual = hourly rate × weekly hours × 52.
Hourly = annual ÷ 52 ÷ weekly hours.
This does not include overtime, unpaid time or benefits. Being salaried does not automatically change overtime rights.
$25 an hour at 40 hours a week is $1,000 a week, or $52,000 a year, about $4,333 a month.
Most conversions multiply the hourly rate by 2,080, which is 40 hours times 52 weeks. At $22 an hour that gives $45,760 a year. The figure assumes paid time off is included in the 52 weeks. If an employee works 38 hours on average, or takes unpaid weeks, use their real hours instead.
| Hours per week | Annual at $22 |
|---|---|
| 30 | $34,320 |
| 38 | $43,472 |
| 40 | $45,760 |
Moving an hourly employee to a salary does not by itself remove the right to overtime. Under federal rules the employee must also pass a duties test and be paid at least a minimum salary level, and several states set a higher level. The federal level has changed more than once in recent years, so check the current figure for your state before converting a non-exempt role.
A salaried pay period is the annual amount divided by the number of pay dates: $52,000 over 26 pay dates is $2,000 per check. Over 24 pay dates it is $2,166.67. Confirm the pay schedule first, or the check will not match what you promised in the offer.
| Hourly rate | Weekly | Yearly | Monthly |
|---|---|---|---|
| $15 | $600 | $31,200 | $2,600 |
| $18 | $720 | $37,440 | $3,120 |
| $20 | $800 | $41,600 | $3,466.67 |
| $25 | $1,000 | $52,000 | $4,333.33 |
| $30 | $1,200 | $62,400 | $5,200 |
| $40 | $1,600 | $83,200 | $6,933.33 |
Monthly figures divide the yearly amount by 12. They will not match a monthly paycheck if you pay biweekly, because a biweekly schedule has 26 or sometimes 27 pay dates.
An hourly employee who works overtime often earns more than the raw rate suggests. Take a fictional technician paid $24 an hour who averages 44 hours a week: 40 hours at $24 plus 4 hours at $36 is $1,104 a week, or $57,408 over 52 weeks. A salaried, exempt offer of $52,000 that expects 45-hour weeks works out to $52,000 ÷ (45 × 52) = $22.22 an hour, with no overtime. Run both through the calculator with real weekly hours before deciding which is the better deal, for either side.
For the executive, administrative and professional exemptions, the Department of Labor sets a minimum weekly salary. After a federal court set aside the 2024 increase, the level applied by the DOL went back to $684 a week, which is $35,568 a year. States such as California, New York and Washington set higher thresholds, so a salary that clears the federal floor can still fall short locally. Check the DOL and your state labor department before converting a role, and remember the duties test applies too.
Yes, 40 hours times 52 weeks.
No.
No. Classification depends on rules and duties.
Divide the annual salary by the hours the person really works in a year. For a 40 hour week, that is 2,080.
Not in the base conversion. Show bonuses separately, since they may change the overtime rate for non-exempt staff.
About $28.85 an hour at 2,080 hours a year, before taxes and benefits.
At 40 hours a week for 52 weeks it is $41,600 a year before taxes. Whether that is competitive depends on the role and local pay, so compare with local postings.
Yes. Multiply the rate by the real weekly hours, such as 25, and by 52. A $20 rate at 25 hours is $26,000 a year.
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