Salary ↔ Hourly Converter

How to Convert Salary to Hourly Rate

The formula is straightforward: divide your annual salary by the total number of working hours in a year. With a standard 40-hour week and 52 weeks per year, that's 2,080 hours.

Hourly Rate = Annual Salary / (Hours per Week x Weeks per Year)

For example, a $60,000 annual salary with standard hours: $60,000 / 2,080 = $28.85 per hour.

Why the Standard Formula May Not Apply to You

• Paid time off — If you get 2 weeks PTO, you're effectively working 50 weeks but paid for 52. Your true hourly rate based on hours worked is higher.
• Overtime — If you regularly work more than 40 hours, your effective hourly rate is lower than the formula suggests.
• Part-time work — Adjust hours per week to match your actual schedule.
• Freelance/contract — Remember to account for self-employment tax (~15%), health insurance, and unpaid time off when comparing to salaried positions.

Salary Comparison Tips

• When comparing job offers, always convert to the same basis (hourly, monthly, or annual) for an apples-to-apples comparison.
• Factor in benefits — health insurance, retirement matching, and PTO can add 20-40% to the value of a salaried position.
• Consider cost of living if comparing positions in different cities.
• For freelancers: a common rule of thumb is to charge 1.5-2x the equivalent hourly rate to account for taxes, insurance, and unbillable time.