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Salary & Income

$25 an Hour Is How Much a Year? (Full Breakdown)

Published on October 26, 2024

The Quick Answer

If you work 40 hours a week for 52 weeks a year:

$25/hour = $52,000 per year.

The Math

$25 (rate) x 40 (hours) x 52 (weeks) = $52,000

Breakdown by Pay Period

  • Annual: $52,000
  • Monthly: $4,333
  • Biweekly (every 2 weeks): $2,000
  • Weekly: $1,000
  • Daily (8 hours): $200

The "Real World" Factors

While $52,000 is the base number, real life changes the math.

1. Unpaid Time Off

If you don't get paid vacation days (common for hourly contractors), taking 2 weeks off reduces your income.

  • 50 weeks x 40 hours x $25 = $50,000.
  • Cost of vacation: $2,000.

2. Overtime

If you work 5 hours of overtime per week at "time and a half" ($37.50/hr):

  • Regular: $52,000
  • Overtime: 5 hrs x 52 weeks x $37.50 = $9,750
  • Total: $61,750

Overtime can significantly boost an hourly wage compared to a fixed salary.

What About Taxes?

$52,000 is your Gross Income. Your Net Income (take-home pay) will be lower.

Estimated Taxes (Single Filer, Standard Deduction):

  • Federal Tax: ~$4,300
  • FICA (SS + Medicare): ~$3,978
  • State Tax: Varies (0% to 6%+)

Estimated Take-Home: ~$43,700 (approx. $3,640/month).

Is $25/Hour Good?

  • National Average: It is near the median individual income in the US.
  • Living Wage: In many mid-sized cities, $25/hr allows for a comfortable, modest lifestyle. In high-cost hubs like NYC or SF, budget will be tight.

Summary

Knowing your annual equivalent helps you compare hourly jobs against salaried offers. $25/hr is a solid baseline of $52k, but overtime can push it much higher.

Convert any hourly rate instantly with our Hourly to Salary Calculator.