Apartment applications, loan forms and job comparisons usually want a yearly income, but many people are paid by the hour. Here is how to convert, and the shortcuts that make it quick.
The short version
- Yearly pay = hourly rate × hours per week × 52.
- $23 × 40 × 52 = $47,840 a year.
- Quick estimate: double the hourly rate and add three zeros. $23 → about $46,000.
- These are gross figures before taxes and deductions.
The formula
A full-time year is 40 hours × 52 weeks = 2,080 hours. Multiply your hourly rate by 2,080: $23 × 2,080 = $47,840. Monthly, that’s $47,840 ÷ 12 = $3,986.67. Every two weeks (80 hours), it’s $1,840.
The double-and-add-zeros trick uses 2,000 hours instead of 2,080, so it comes out about 4% low. It’s handy in a conversation; use the exact number on forms.
Hourly rates converted
| Hourly | Weekly (40 h) | Biweekly | Monthly | Yearly |
|---|---|---|---|---|
| $10 | $400 | $800 | $1,733.33 | $20,800 |
| $15 | $600 | $1,200 | $2,600.00 | $31,200 |
| $16.50 | $660 | $1,320 | $2,860.00 | $34,320 |
| $18 | $720 | $1,440 | $3,120.00 | $37,440 |
| $20 | $800 | $1,600 | $3,466.67 | $41,600 |
| $23 | $920 | $1,840 | $3,986.67 | $47,840 |
| $25 | $1,000 | $2,000 | $4,333.33 | $52,000 |
| $29 | $1,160 | $2,320 | $5,026.67 | $60,320 |
| $35 | $1,400 | $2,800 | $6,066.67 | $72,800 |
| $40 | $1,600 | $3,200 | $6,933.33 | $83,200 |
| $50 | $2,000 | $4,000 | $8,666.67 | $104,000 |
| $74 | $2,960 | $5,920 | $12,826.67 | $153,920 |
| $85 | $3,400 | $6,800 | $14,733.33 | $176,800 |
Each rate from $7.25 to $150 has its own page on our hourly to salary hub.
Part-time hours
Use your real weekly hours. At $23 an hour:
- 20 hours a week: $23 × 20 × 52 = $23,920
- 25 hours a week: $29,900
- 30 hours a week: $35,880
- 35 hours a week: $41,860
Unpaid weeks
If you don’t get paid vacation or holidays, count only the weeks you’re paid. Fifty paid weeks at 40 hours and $23 is $46,000. Seasonal or contract work with a few weeks off a year can lower the total more than people expect.
Overtime
Covered, non-exempt workers earn at least 1.5 times their regular rate for hours over 40 in a workweek under the Fair Labor Standards Act. At $23 an hour, overtime is $34.50. Five overtime hours every week adds $34.50 × 5 × 52 = $8,970 a year.
Example
Destiny earns $23 an hour as a medical assistant in Raleigh and works 40 hours plus about 4 hours of overtime most weeks. Her base pay is $47,840. The overtime adds $34.50 × 4 × 50 weeks = $6,900, so her gross income is about $54,740, which is the figure she can use on a rental application, along with pay stubs to prove it.
See how to calculate overtime pay for the full rules.
Going the other way
To turn a salary into an hourly rate, divide by 2,080. See how much $60,000 a year is per hour, or use our hourly to salary calculator and salary to hourly calculator.
Proving income on an application
Landlords and lenders often ask for yearly income and proof. If your hours vary, use an average from recent pay stubs rather than your best week. Many landlords use rules of thumb, such as yearly income of about 40 times the monthly rent; at $23 an hour full time ($47,840), that suggests rent up to about $1,196 a month. Our rent affordability calculator shows three common rules side by side.
When hours change week to week
For variable schedules, add up your hours for the last 8 to 12 weeks, divide by the number of weeks, and use that average in the formula. If you worked 312 hours over 9 weeks, that is about 34.7 hours a week; at $23, about $41,500 a year.
Raises in dollars per year
Every $1 an hour is $2,080 a year at full time. A raise from $23 to $25 adds $4,160 a year before taxes, or about $347 a month. Thinking of raises in yearly terms helps when comparing job offers.
