Only use 2,080 hours when the role has 40 paid hours every week for all 52 weeks.
Salary conversion guide
Use paid hours — not the number of hours on a clock — to convert hourly pay.
The basic formula is simple. The harder part is deciding which hours and weeks should be included.
The formula
Annual gross salary = hourly rate × paid hours per week × paid weeks per year
A standard full-time calculation uses 40 hours per week and 52 paid weeks. That produces 2,080 paid hours before any unpaid leave. If the job does not pay for every week, use the number of weeks that actually generate wages.
| Hourly rate | Paid hours per week | Paid weeks | Annual gross |
|---|---|---|---|
| $15/hour | 40 | 52 | $31,200 |
| $20/hour | 40 | 52 | $41,600 |
| $25/hour | 40 | 52 | $52,000 |
| $30/hour | 40 | 52 | $62,400 |
| $40/hour | 40 | 52 | $83,200 |
| $50/hour | 40 | 52 | $104,000 |
Paid weeks
Why 52 weeks is a baseline, not a promise.
Seasonal work, school schedules, hiring gaps, and unpaid leave can reduce the number of paid weeks. A $20/hour role at 40 hours for 48 weeks produces $38,400, not $41,600. The difference comes from four missing paid weeks, not from a lower hourly rate.
Part-time example
At 20 hours per week for 52 weeks, a $25/hour role produces $26,000 gross. The same rate at 40 hours produces $52,000. The hourly rate did not change; the number of paid hours did.
Mistakes to avoid
Five assumptions that can make an estimate look too high
Overtime depends on actual hours, employer policy, and legal eligibility. Keep regular pay separate from premium hours.
Unpaid holidays, sick days, seasonal closures, and gaps between contracts all reduce paid weeks.
Annual gross pay is before tax withholding, benefits, retirement contributions, and other deductions.
Health coverage, retirement matching, paid leave, and schedule control can make two similar gross figures unequal in practice.
Weekly, biweekly, semimonthly, and monthly paychecks can imply different cash flow without changing annual gross income.
Offer checklist
Write down six numbers before accepting an hourly offer.
- Guaranteed weekly hours.
- Paid weeks per year.
- Overtime eligibility and whether extra hours are predictable.
- Paid time off and holiday treatment.
- Health, retirement, and other benefit contributions.
- Commuting cost and schedule flexibility.
Then test the downside
Run the calculator again with fewer hours and fewer paid weeks. If the offer only works under the most optimistic schedule, that risk belongs in the comparison.