The quick formula: Hourly rate × 2,080 = annual salary. (2,080 hours = 52 weeks × 40 hours/week.) So $25/hour = $52,000/year. But that's gross income — before taxes, and it doesn't account for benefits, overtime, or the real differences between hourly and salaried employment.
Common Hourly to Salary Conversions
- •$15/hour → $31,200/year ($2,600/month)
- •$20/hour → $41,600/year ($3,467/month)
- •$25/hour → $52,000/year ($4,333/month)
- •$30/hour → $62,400/year ($5,200/month)
- •$40/hour → $83,200/year ($6,933/month)
- •$50/hour → $104,000/year ($8,667/month)
Hourly vs Salaried: What You're Really Comparing
Salaried jobs typically include benefits that hourly jobs often lack: health insurance (worth $6,000–$15,000/year in employer contributions), 401k matching, paid time off (2 weeks = $1,500–$4,000 in foregone earnings for hourly workers), and job security during slow periods.
Hourly workers who are non-exempt (most are) must be paid 1.5× for overtime — which can significantly boost earnings. Salaried exempt employees work overtime without additional pay. If a $52,000 salaried job routinely requires 50 hours/week, the effective hourly rate drops to $20/hour.
When evaluating a salaried offer, calculate the total compensation package including benefits. Add health insurance, employer 401k match, PTO value, and any other perks before comparing to your hourly equivalent.
The real comparison isn't $25/hour vs $52,000 salary — it's $25/hour + your benefits vs $52,000 + their benefits package. Calculate both as total annual compensation.