At 40 hours a week for 52 weeks, $20 an hour is $41,600 a year before taxes. That is the standard full-time year of 2,080 paid hours. Your real number depends on your hours, unpaid time off, and overtime.
Yearly pay = hourly rate × hours per week × paid weeks per year $20 × 40 × 52 = $41,600
$20 an hour by pay period
Full time, 40 hours a week, all 52 weeks paid:
| Period | Calculation | Gross pay |
|---|---|---|
| Hour | $20.00 | |
| Day (8 hours) | $20 × 8 | $160.00 |
| Week | $20 × 40 | $800.00 |
| Every two weeks (biweekly) | $800 × 2 | $1,600.00 |
| Twice a month (semimonthly) | $41,600 ÷ 24 | $1,733.33 |
| Month (average) | $41,600 ÷ 12 | $3,466.67 |
| Year | $20 × 2,080 | $41,600.00 |
A month is not four weeks. Most months have a few extra days, so the monthly average is yearly pay divided by 12, not weekly pay times 4 ($3,200). See biweekly vs semimonthly pay for why paychecks differ.
$20 an hour with different schedules
| Schedule | Calculation | Yearly gross |
|---|---|---|
| 40 hours, 52 paid weeks | $20 × 40 × 52 | $41,600 |
| 40 hours, 2 weeks unpaid | $20 × 40 × 50 | $40,000 |
| 37.5 hours, 52 weeks | $20 × 37.5 × 52 | $39,000 |
| 32 hours, 52 weeks | $20 × 32 × 52 | $33,280 |
| 30 hours, 52 weeks | $20 × 30 × 52 | $31,200 |
| 20 hours, 52 weeks | $20 × 20 × 52 | $20,800 |
$20 an hour with overtime
For nonexempt employees, federal law requires at least time and a half for hours over 40 in a workweek. At $20 an hour, overtime pays at least $30 an hour.
With 5 overtime hours every week of the year:
- Regular pay: $20 × 40 × 52 = $41,600.
- Overtime pay: $30 × 5 × 52 = $7,800.
- Total: $49,400 a year, or about $4,116.67 a month.
Before and after taxes
These are gross figures. Your take-home pay is lower after federal and state income tax, Social Security and Medicare, and deductions such as health insurance and retirement contributions. Those depend on your state, filing status, and benefits, so we do not estimate them here. The IRS Tax Withholding Estimator can help you check federal withholding, and gross pay vs net pay explains the difference.
Run your own numbers
- Hourly to salary calculator: any rate, hours, and unpaid weeks, by pay period.
- Annual income calculator: add overtime, bonuses, tips, and other work.
- Overtime calculator: price a week with overtime.
Sources
- U.S. Department of Labor, Fact Sheet #23: Overtime Pay Requirements of the FLSA
- Internal Revenue Service, Tax Withholding Estimator
About this guide. Written for US employees as general information, not legal or tax advice. Rules can differ by state, employer, and contract. See our methodology and disclaimer.