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Hourly to Salary
Convert your hourly wage to annual salary, monthly, bi-weekly, weekly, and daily pay. Understand your true earning potential.
$25/Hour ≠ $52,000/Year (Usually)
The math seems simple: $25 x 40 hours x 52 weeks = $52,000. But that assumes you never get sick, never take a vacation, and work every single holiday. Real life isn't like that.
💡 Real Talk from David Chen, CFA
When negotiating, always ask for the SALARY, not the hourly rate. Why? Salaried jobs usually come with paid time off (PTO). Hourly jobs usually don't. If you're hourly and take 2 weeks off, your $52k just became $50k.
The "Hidden Paycheck"
Salary is just one part of the pie. Don't ignore the rest:
- Health Insurance: Employer pays ~70% of premiums. Value: ~$5k-$10k/year.
- 401k Match: Free money. Value: ~$2k-$5k/year.
- PTO: 2 weeks vacation = 4% raise.
A $50k job with benefits is often worth MORE than a $60k contract job with zero benefits.
⚠️ Common Mistake: Ignoring Unpaid Lunch
"I work 9 to 5." That's 8 hours. But if you have an unpaid 1-hour lunch, you're only paid for 7 hours. That's a 12.5% pay cut you didn't account for. Always clarify: "Is lunch paid or unpaid?"
Hourly vs. Salary: The Trade-off
Hourly Pros:
- Overtime pay (1.5x) is legally required for most.
- You get paid for every minute you work.
- Less pressure to answer emails at 9 PM.
Salary Pros:
- Steady paycheck (easier for budgeting/mortgages).
- Better benefits usually.
- Career advancement is often faster.
Reviewed by David Chen, CFA
Chartered Financial Analyst
David helps you understand what your time is actually worth.
Frequently Asked Questions
How do you calculate annual salary from hourly wage?
Multiply your hourly wage by the number of hours you work per week, then multiply by the number of weeks you work per year. Standard calculation: Hourly Rate × 40 hours × 52 weeks = Annual Salary. For example, $25/hour × 40 × 52 = $52,000/year.
Is $25 an hour good pay in 2025?
$25/hour equals approximately $52,000/year (full-time). This is above the US median household income of ~$75,000, but lower for single earners in high-cost areas. It also depends heavily on benefits—health insurance and 401k matching can add $7,000-$15,000 in value annually.
Do hourly workers get paid if they take time off?
Most hourly employees do NOT get paid time off (PTO) unless it's specifically part of their employment contract or required by state law. This means taking a 2-week vacation can reduce annual earnings by ~4%. Always clarify PTO policies before accepting a job offer.