The 2080-hour shortcut, and when it breaks
A full-time year is 40 hours a week for 52 weeks, which is 2,080 hours. Multiply your hourly rate by 2,080 and you have the annual salary. The number only holds if you actually work all 52 weeks paid.
- Quick head math — double the hourly rate and add three zeros for a rough yearly figure. $25 → ~$50,000, close to the exact $52,000.
- Unpaid time off — two unpaid weeks drops you to 2,000 hours; use that instead of 2,080.
- Part-time — swap 40 for your real weekly hours. 30 hours a week is 1,560 hours a year.
Common hourly rates at full time
| Hourly | Weekly (40 hrs) | Monthly | Annual (2,080 hrs) |
|---|---|---|---|
| $15 | $600 | $2,600 | $31,200 |
| $20 | $800 | $3,467 | $41,600 |
| $25 | $1,000 | $4,333 | $52,000 |
| $30 | $1,200 | $5,200 | $62,400 |
| $40 | $1,600 | $6,933 | $83,200 |
| $50 | $2,000 | $8,667 | $104,000 |
Monthly is the annual figure divided by 12, not the weekly amount times 4 — a month averages 4.33 weeks, so times-4 undercounts your pay by roughly 8 percent.
The number this doesn't include
The 2,080-hour figure is gross salary for base hours only. Three things routinely move the real number.
- Overtime — hours past 40 a week are usually paid at 1.5×, so a lot of overtime lifts the annual total above the straight conversion.
- Taxes and withholding — income tax, Social Security and Medicare come off the top; take-home is well below gross.
- Benefits — paid leave, health insurance and retirement matching are real compensation the hourly rate never shows.
Common questions
How do I convert an hourly wage to an annual salary?
Multiply the hourly rate by the hours you work each week, then by the weeks you work each year. At full time that is hourly x 40 x 52, which is hourly x 2080. So $25 an hour is $52,000 a year.
Why is 2080 the standard number of work hours?
2080 is 40 hours a week times 52 weeks. It assumes full-time hours with no unpaid time off. If you take two unpaid weeks, use 2000 hours instead, which lowers the annual figure by about 4 percent.
Is this gross or take-home pay?
It is gross pay, before taxes and deductions. Your actual take-home is lower once federal and state income tax, Social Security and Medicare come out, so budget on the net figure, not this one.
