Hourly Wage to Annual Salary Conversion: The 2080 Hour Rule
The official US standard for converting hourly pay to annual salary — explained with real examples and adjustments for every work schedule.
The 2080 Hour Rule: The Standard US Benchmark
The 2080 hour rule is simple:
Annual Salary = Hourly Rate × 2080
Why 2080? Because a standard full-time work year is 40 hours per week × 52 weeks = 2,080 hours. This is the baseline figure used by:
- The US Department of Labor for salary equivalency calculations
- Most payroll departments for converting between hourly and salary
- Financial calculators and comparison tools
- Job posting sites (Indeed, LinkedIn, Glassdoor) for showing salary ranges
The Math Explained
Here's the step-by-step breakdown:
| Factor | Value |
|---|---|
| Hours per week (full-time standard) | 40 |
| Weeks per year | 52 |
| Total annual hours (40 × 52) | 2,080 |
| Hourly rate | Varies |
| Annual salary (rate × 2080) | Varies |
Quick Conversion Examples
Here are common hourly-to-annual conversions using the 2080 rule:
| Hourly Rate | Annual Salary | Monthly (÷12) | Biweekly (÷26) |
|---|---|---|---|
| $15.00 | $31,200 | $2,600 | $1,200 |
| $20.00 | $41,600 | $3,467 | $1,600 |
| $25.00 | $52,000 | $4,333 | $2,000 |
| $30.00 | $62,400 | $5,200 | $2,400 |
| $35.00 | $72,800 | $6,067 | $2,800 |
| $40.00 | $83,200 | $6,933 | $3,200 |
| $50.00 | $104,000 | $8,667 | $4,000 |
| $60.00 | $124,800 | $10,400 | $4,800 |
Adjusting for Different Work Schedules
The 2080 rule assumes 40 hours per week, 52 weeks per year. But not everyone works exactly this schedule. Here's how to adjust:
Part-Time Schedules
For part-time work, adjust the weekly hours but keep the 52-week calculation:
| Weekly Hours | Annual Hours | Multiplier for $25/hr | Annual Salary |
|---|---|---|---|
| 20 | 1,040 | 1040 × rate | $26,000 |
| 25 | 1,300 | 1300 × rate | $32,500 |
| 30 | 1,560 | 1560 × rate | $39,000 |
| 35 | 1,820 | 1820 × rate | $45,500 |
| 40 | 2,080 | 2080 × rate | $52,000 |
Paid Time Off Considerations
One common point of confusion: does the 2080 rule account for vacation and sick leave? The answer is no. The 2080 figure represents a full year of working 40 hours every week. If you receive 2 weeks of paid vacation and 5 paid sick days, your actual worked hours would be approximately:
- 2 weeks vacation = 80 hours off
- 5 sick days = 40 hours off
- Total paid leave: 120 hours
- Actual worked hours: 2,080 − 120 = 1,960
However, since paid leave is compensated, your total annual earnings remain the same. The 2080 rule measures your earned salary, not your actual worked hours. Some calculators use 2,000 hours (50 weeks × 40) as a "working days only" estimate, but 2080 is the official standard.
The After-Tax Picture
Knowing your annual salary is only part of the story. Let's look at what actually ends up in your bank account. Using the 2080 rule, a $30/hr rate ($62,400/year in Austin, Texas):
| Item | Annual | Monthly |
|---|---|---|
| Gross Salary ($30 × 2080) | $62,400 | $5,200 |
| Federal Income Tax | −$6,155 | −$513 |
| FICA Tax (7.65%) | −$4,774 | −$398 |
| Pre-Tax 401(k) (5%) | −$3,120 | −$260 |
| Health Insurance | −$2,400 | −$200 |
| Net Take-Home | $45,951 | $3,829 |
Your effective take-home rate is approximately $22.28 per hour ($45,951 ÷ 2,080 hours), or about 74% of your $30/hr gross rate.
Try Our Hourly to Salary Calculator
Use our Hourly to Salary Calculator to convert any hourly rate and see the full after-tax breakdown for your state and filing status.
Overtime: When the 2080 Rule Gets Adjusted
If you regularly work overtime, your effective annual salary is higher than the 2080 rule suggests. Overtime is paid at 1.5x your hourly rate (after 40 hours per week under the FLSA). For example, working 5 extra hours per week at $25/hr:
| Component | Hours | Rate | Annual Earnings |
|---|---|---|---|
| Regular Pay | 2,080 | $25.00 | $52,000 |
| Overtime (5 hrs/wk × 52 wks) | 260 | $37.50 | $9,750 |
| Total | 2,340 | $61,750 |
That's 18.7% more than the base $52,000 salary — worth accounting for in your planning.
FAQ
2080 hours = 40 hours/week × 52 weeks/year. Multiply your hourly rate by 2080 to get annual salary. It's the official US standard for full-time pay conversion.
2000 hours assumes 50 working weeks (2 weeks unpaid leave). The 2080 figure accounts for all 52 weeks. The DOL and most employers use 2080 as the baseline.
Annual = hourly × 2080. Monthly = annual ÷ 12. For a rough estimate, multiply hourly rate by 173.33 (2080 ÷ 12).
Adjust for your weekly hours. 20 hrs = 1040 annual hours, 30 hrs = 1560, 35 hrs = 1820. Formula: weekly hours × 52 × hourly rate.
If you regularly work overtime, yes. Overtime at 1.5x adds up significantly. Use 2080 for base salary and add overtime separately for accurate budgeting.
Last updated: July 22, 2026.