Hourly to Salary Conversion: The Formula (and What It Doesn't Tell You)
Comparing a job offer often means translating between hourly and salary language. The math is simple, but the number you get only tells part of the story. Here is the conversion, the common pitfalls, and the FLSA detail that matters for salaried roles.
The Core Formula
Annual salary = hourly rate × hours per week × paid weeks per year
The default assumption is 40 hours/week and 52 paid weeks:
| Hourly rate | × 40 hrs | × 52 weeks | Annual salary |
|---|---|---|---|
| $20/hr | $800/wk | — | $41,600 |
| $25/hr | $1,000/wk | — | $52,000 |
| $35/hr | $1,400/wk | — | $72,800 |
The 52-vs-50 Week Trap
If a salaried job is unpaid for two weeks of vacation, you are really paid for 50 weeks. That changes the equivalent:
- $25/hour × 40 × 52 = $52,000
- $25/hour × 40 × 50 = $50,000
Always confirm how many weeks you are actually paid for before treating the annual equivalent as real.
Salary Back to Hourly
To find your effective hourly rate, reverse the formula: hourly = annual salary ÷ weeks ÷ hours.
A $60,000 salary at 40 hours/week over 52 weeks is $60,000 ÷ 52 ÷ 40 ≈ $28.85/hour. Knowing this number helps you compare a salary offer against an hourly one on equal terms.
Conversion Does Not Change Your Taxes
Switching the label from hourly to salary does not change your tax bill—only the total annual amount does. FICA, the standard deduction, and your bracket are identical for the same yearly compensation. Use our Hourly to Salary tool and Salary Calculator to see both views.
Before You Take a Salary Job: The FLSA Exempt Threshold
A salary title does not automatically mean exempt from overtime. Under the FLSA, in 2026 the salary threshold for exempt (non-overtime-eligible) salaried employees is $35,568 per year ($684 per week) under the 2019 Department of Labor rule (a 2024 rule that would have raised it was vacated). Highly compensated employees generally need at least $107,432 per year to be exempt. If a salaried job pays below that threshold, you generally must still be paid overtime for hours over 40. See our overtime tax guide for more.