How to Convert Hourly Wage to Annual Salary
The basic formula is simple: multiply your hourly rate by the number of hours you work per week, then multiply by the number of weeks you work per year. If you earn $25/hour and work 40 hours a week for 52 weeks, your annual salary is $52,000.
The Formula
With Overtime:
Annual = (Rate x Hours x Weeks) + (Rate x Multiplier x OT Hours x Weeks)
Frequently Asked Questions
How do I account for unpaid time off?â–¾
Reduce the weeks per year to account for unpaid time off. For example, if you take 2 weeks of unpaid vacation, set weeks per year to 50 instead of 52. This will give you a more accurate annual salary estimate.
What is the overtime multiplier?â–¾
Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a workweek. Some employers or union contracts may offer double time (2x) for holidays or extended overtime.
Is $25/hour a good wage?â–¾
At $25/hour working full-time, you would earn approximately $52,000 per year. The median household income in the US is around $75,000, so $25/hour is below the median for a single earner but above minimum wage in every state. Whether it is sufficient depends on your location and cost of living.
Calclypso Editorial Team
Reviewed by certified financial professionals. Last updated: April 2026.