Multiply the rate by the hours you work in a week, then multiply that by the weeks you work in a year. Written out, the formula is:
The formula
Annual salary = hourly rate x hours per week x weeks worked per year
The standard full time assumption is 40 hours a week over 52 weeks, which is 2,080 hours a year.
Worked example
So $25 an hour at 40 hours a week for 52 weeks is 25 x 40 x 52, which is $52,000 a year before tax. From there, monthly pay is the year divided by 12, or $4,333.33. A biweekly paycheck is the year divided by 26, or $2,000. A weekly figure is the year divided by 52, which brings you back to $1,000.
- hours in a full time year
- 2,080
- weekly paychecks
- 52
- biweekly paychecks
- 26
- monthly paychecks
- 12
For context, the national median wage across all US occupations in the federal data behind our career pages is $50,980 a year, which is about $24.51 an hour on the same 40 hour, 52 week assumption.