Common conversions
The quick math
The rule of thumb: double your hourly rate, add three zeros. $20/hr ร 2 = 40 ร $1,000 = $40,000 annual (full-time). Works because 2,080 hours/year (40 ร 52) โ 2,000 for approximation. Actual is about 4% higher.
What affects your real take-home
- Overtime โ time-and-a-half past 40 hours/week boosts annual by 30โ50% for heavy-OT workers.
- Unpaid time off โ if you take 2 weeks off unpaid, multiply by 50/52 โ 96% of the base number.
- Taxes + health insurance โ federal, state, and FICA typically take 20โ30% off the top for mid-income workers.
- Benefits โ a $60k salary with full benefits often beats a $75k salary with no benefits.