How it’s calculated
Annual pay is the hourly rate times the paid hours in a year. A full-time 40-hour week for 52 weeks is 2,080 hours.
Example: 25 per hour × 40 hours × 52 weeks = 52,000 a year, which is 4,333.33 a month or 1,000 a week.
Figures are gross (before tax) and exclude overtime. Note that a month is not four weeks: 52 ÷ 12 ≈ 4.33 weeks.
Frequently asked questions
How many working hours are in a year?
40 hours × 52 weeks = 2,080. The U.S. federal government uses 2,087 hours, an average that accounts for the extra workday in some calendar years.
Is $25 an hour good money per year?
At 40 hours a week for 52 weeks, $25 an hour is $52,000 a year before tax, or about $4,333 a month.
Why is monthly pay not hourly × 160?
Months average 52 ÷ 12 ≈ 4.33 weeks, so a 40-hour month is about 173.3 hours, not 160. Dividing the annual figure by 12 is accurate.
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Sources
- Computing Hourly Rates of Pay Using the 2,087-Hour Divisor — U.S. Office of Personnel Management
- Wages and the Fair Labor Standards Act — U.S. Department of Labor
Formulas are taken from the free public references above. Results are provided “as is” for informational and educational purposes only. See our disclaimer.
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