Salary and wage conversion
How to Calculate Annual Salary from Hourly Pay
Use your hourly wage, paid weekly hours and paid weeks per year to estimate annual gross salary before deductions.
Quick answer
Multiply the hourly wage by paid hours per week, then multiply by paid weeks per year.
Annual gross pay = hourly wage × paid hours per week × paid weeks per yearAt $25 per hour, 40 paid hours per week and 52 paid weeks, the estimate is $52,000 per year.
The hourly-to-annual formula
The calculation annualizes paid working time. It does not assume that every worker has a 40-hour week or 52 paid weeks.
- Identify the gross hourly wage.
- Use the number of paid hours in a typical week.
- Determine how many weeks are paid during the year.
- Multiply all three values.
Step-by-step example
For a worker earning $25 per hour for 40 paid hours each week with no unpaid weeks:
- Weekly gross pay: $25 × 40 = $1,000.
- Annual gross pay: $1,000 × 52 = $52,000.
- Average monthly gross pay: $52,000 ÷ 12 = $4,333.33.
Gross pay is not take-home pay
This result is before income tax, CPP, EI, benefit premiums and other deductions.
Worked examples
Full-time schedule
$30 × 37.5 hours × 50 paid weeks
$56,250 annual gross payPart-time schedule
$20 × 24 hours × 52 paid weeks
$24,960 annual gross payUnpaid time and variable schedules
If time away from work is unpaid, reduce the paid-weeks value. For example, two unpaid weeks means using 50 rather than 52. Paid vacation is already paid time and should not be subtracted.
When weekly hours change, use a representative average only if it is meaningful. For irregular schedules, calculate each period separately or total actual paid hours over a longer period.
Common pay-period equivalents
| Period | Calculation from annual gross pay | $52,000 example |
|---|---|---|
| Monthly average | Annual ÷ 12 | $4,333.33 |
| Semi-monthly average | Annual ÷ 24 | $2,166.67 |
| Biweekly average | Annual ÷ 26 | $2,000.00 |
| Weekly | Annual ÷ paid weeks | $1,000.00 |
Calculate your own estimate
Adjust hourly wage, paid weekly hours, workdays and unpaid weeks using the Hourly to Salary Calculator.
Open Hourly to Salary CalculatorFrequently asked questions
Should I always multiply by 2,080 hours?
No. The 2,080 shortcut assumes 40 paid hours for 52 weeks. Use your actual paid schedule when it differs.
Do I subtract paid vacation?
No. Paid vacation remains paid time. Subtract only weeks that are genuinely unpaid.
Does annual gross pay include overtime or bonuses?
Not unless you add those earnings separately. The basic conversion uses the regular hourly wage and regular paid hours.
Is monthly pay four times weekly pay?
Not exactly. A year has 52 weeks, so average monthly gross pay is annual gross pay divided by 12.
Method and scope
This guide explains arithmetic wage conversion and does not interpret an employment-standard entitlement. See the calculation methodology, editorial policy and sources policy.