Converting Between Hourly and Annual Pay
Turning an hourly rate into a yearly salary looks like simple multiplication. It mostly is — but a few details decide whether your answer is realistic.
"Is 35 an hour a good wage?" is hard to answer until you turn it into a yearly figure you can compare. Converting between hourly and annual pay is a genuinely useful skill — for comparing job offers, for budgeting, and for understanding your own worth. This guide shows how, and where the simple version goes wrong.
The Basic Conversion
The standard way to turn an hourly rate into an annual salary uses a common assumption: a 38-hour week (full-time hours vary, but this is a frequent figure) across 52 weeks of the year.
At 35 an hour, 38 hours a week: 35 × 38 × 52 = 69,160 a year. To go the other way — salary to hourly — simply reverse it: divide the annual salary by 52, then by the weekly hours.
Why the Simple Formula Can Mislead
The formula above multiplies by 52 weeks — but here is the catch. A salaried employee is usually paid for 52 weeks including their paid leave: annual leave, public holidays, sick leave. They earn the same salary whether or not they are at their desk.
An hourly worker, in many cases, is paid only for hours actually worked. If they take unpaid time off, they earn nothing for it. So multiplying an hourly rate by a full 52 weeks can overstate what an hourly worker truly takes home across a year, because it assumes every week is fully worked and paid.
For a fair comparison, an hourly worker may want to multiply by the number of weeks they actually expect to work and be paid — for example, 48 instead of 52 — to get a more realistic annual figure.
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Try the Plantrino Hourly to Salary CalculatorComparing Hourly and Salaried Roles Fairly
Two roles can show the same converted number yet differ in important ways. When comparing, look beyond the headline figure:
- Paid leave. Salaried roles typically include paid annual, sick, and public holiday leave. An hourly role may not — which makes an equal headline figure not truly equal.
- Overtime. Hourly workers are often paid extra for additional hours; some salaried roles expect extra hours with no extra pay.
- Stability. A salary is predictable each pay; hourly income can swing with the hours available.
- Other benefits. Retirement contributions and other entitlements may differ between the two.
Quick Reference
Some handy approximate conversions for a full-time 38-hour week:
| Hourly rate | Approx. annual (× 38 × 52) |
|---|---|
| 25 | 49,400 |
| 35 | 69,160 |
| 45 | 88,920 |
| 55 | 108,680 |
Frequently Asked Questions
Should I multiply by 52 weeks or fewer?
For a salaried role, 52 works because paid leave is included. For an hourly role, using slightly fewer weeks can give a more realistic figure if some time off is unpaid.
Is hourly or salaried better?
Neither is universally better. Hourly can mean overtime pay and clear boundaries; salaried can mean predictability and paid leave. It depends on the roles and your priorities.
Does this give gross or net pay?
The conversion gives gross pay — before tax. Your take-home pay will be lower once tax and other deductions are applied.
Converting hourly to annual pay is straightforward multiplication — rate, hours, weeks — but the honest figure depends on how many weeks are genuinely paid. When comparing an hourly job with a salaried one, weigh paid leave, overtime, and stability alongside the converted number, and the comparison becomes a fair one.