Salary & Income
How Much Is $20 an Hour Per Year? Hourly to Salary Explained
At 40 hours a week and 52 weeks a year, $20 an hour works out to $41,600 a year before taxes. An hourly to salary calculator does this math for you, but the formula is simple enough to do in your head. Here is how it works, plus a quick-reference table and the [Hourly to Salary Calculator](/calculators/hourly-to-salary-calculator) for your own hours.
By the MoneyTools Editorial TeamLast updated 5 min readEditorial Policy
How an hourly to salary calculator works
A full-time year is usually counted as 40 hours a week for 52 weeks, which is 2,080 hours. Multiply that by your hourly rate and you get your gross yearly pay.
Yearly pay = Hourly rate × Hours per week × 52 Monthly pay = Yearly pay ÷ 12 Weekly pay = Hourly rate × Hours per week
- 52
- Weeks in a year
- 2,080
- Full-time hours in a year (40 × 52)
Worked example: $20 an hour per year
Worked example
Converting $20 an hour to a salary
- Weekly: $20 × 40 hours = $800
- Yearly: $800 × 52 weeks = $41,600
- Monthly: $41,600 ÷ 12 ≈ $3,466.67
- Every two weeks: $800 × 2 = $1,600
$20 an hour is $41,600 a year before taxes at full-time hours.
Hourly to salary quick-reference table
| Hourly rate | Weekly (40 hrs) | Monthly | Yearly |
|---|---|---|---|
| $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 |
The quick mental math trick
Because 2,080 hours is close to 2,000, you can double your hourly rate and add three zeros. $20 an hour becomes about $40,000. The real number is a little higher — $41,600 — because of the extra 80 hours.
What changes your real yearly pay
Fewer hours or unpaid time off
If you work 35 hours a week, $20 an hour is $36,400 a year. Two weeks of unpaid leave cuts 80 hours, or $1,600.
Overtime
Extra hours at time-and-a-half raise your total. See how to calculate overtime pay or use the Overtime Calculator.
Taxes and deductions
These numbers are gross pay. Federal and state income tax, Social Security, Medicare and benefits come out first. The Take-Home Pay Calculator estimates what you keep.
Hourly vs salary: which is better?
Hourly workers are usually paid for every hour and often earn overtime. Salaried workers get steady pay but may not get overtime. When comparing job offers, convert both to a yearly figure and then add the value of benefits like health insurance and retirement matching.
All figures are gross estimates for illustration. Your employer's pay schedule and hours decide your actual pay.
Run your own numbers
Convert an hourly wage into an annual salary.
Related calculators
Frequently asked questions
Related guides
How to Calculate Overtime Pay: Time-and-a-Half Explained
How an overtime pay calculator works: the time-and-a-half formula, a $20/hour example with 10 overtime hours and a weekly pay comparison table.
How Much Tax Will I Pay? Salary Tax Explained
Understand US salary tax: federal brackets, marginal vs effective rate, FICA and state tax, with a $60,000 worked example and a free take-home pay calculator.
How Compound Interest Works: Formula, Examples & Calculator
Learn how compound interest works, the A = P(1 + r/n)^(nt) formula, monthly vs yearly compounding, and two worked examples you can check with a free calculator.