Salary to Hourly Calculator

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Convert any salary to an hourly rate — or find your true hourly rate once overtime and commute time are counted.

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Use fewer weeks if you take unpaid time off

Enter your salary or hourly rate to convert

What is a salary to hourly calculator?

A salary to hourly calculator converts any pay period — annual, monthly, or hourly — into the others instantly. If you earn $75,000 a year, the standard formula divides by 2,080 working hours and gives you $36.06 per hour. If you earn $28 per hour and want to compare it against a salaried offer, it works in reverse: $28 × 40 hours × 52 weeks = $58,240 per year. This calculator handles both directions on a single page, so you do not need two separate tools.

How the conversion works

Hourly from annualAnnual salary ÷ (hours per week × weeks per year)
Annual from hourlyHourly rate × hours per week × weeks per year
MonthlyAnnual ÷ 12
WeeklyAnnual ÷ weeks per year

The default is 40 hours per week and 52 weeks per year, giving the standard 2,080-hour work year used across US, UK, and Canadian payroll. You can adjust both to match part-time hours or unpaid time off. For example, if you take two weeks of unpaid leave, set weeks per year to 50 — your hourly rate rises because the same annual salary is spread across fewer hours.

What your contract rate is not telling you

The standard conversion answers one question: what does my salary work out to per hour on paper? It does not answer the more useful one: what is each hour of your life actually worth, given everything you do for that job? The Real Hourly Rate tab answers that by counting hours your employer does not pay but your job still requires — unpaid overtime, commute and prep time, and time lost to vacation policies. Add in annual bonuses and the dollar value of health insurance or other perks, and the picture changes significantly.

The math often surprises people. A $80,000 salary with a nominal rate of $38.46/hr can drop to $28–$30/hr for someone working eight hours of unpaid overtime per week with a 45-minute daily commute. Run the same numbers the other way: someone with a lower salary but full remote work and no overtime may be earning more per real hour. If you are weighing an office job against a remote role, or a salaried position against going freelance, the Real Hourly Rate is the number to compare — not the contract figure.

The Freelance Floor Rate card takes that one step further. It adjusts your true hourly rate upward to account for self-employment taxes (27% for the US, 30% for the UK, 26% for Canada) and the benefits your employer was covering. Use it alongside our Freelance Hourly Rate Calculator to set a rate that actually replaces your full employment package.

How to use this calculator

Enter your amount and select the input type. Type your salary or wage, then choose Annual, Monthly, or Hourly. The converter normalizes everything to an annual figure first and outputs all four periods — annual, monthly, weekly, and hourly — simultaneously.

Adjust hours per week and weeks per year if needed. The defaults (40 hours, 52 weeks) work for standard full-time roles. Change them for part-time schedules, contract work, or unpaid time off. If you take three weeks of unpaid vacation, set weeks per year to 49.

Switch to the Real Hourly Rate tab for a full picture. Enter your salary, any annual bonus, and the monthly dollar value of employer-paid benefits such as health insurance or a 401(k) match. Then fill in your actual hours — official hours, unpaid overtime per week, office days, and your daily commute and prep time. Select your market (US, UK, or Canada) to set the correct vacation default and self-employment tax buffer.

Read the three output cards. The Nominal Rate is what your contract implies. The True Hourly Rate is what you earn per hour of your life, accounting for all time the job requires. The Freelance Floor Rate is the minimum hourly rate you would need to charge as a freelancer to match your current total compensation — after taxes and removed employer benefits. For detail on self-employment tax by country, see our Self-Employment Tax Calculator.

Frequently Asked Questions

How do you convert annual salary to hourly rate?
Divide your annual salary by the number of hours you work per year. For a standard 40-hour week and 52 weeks per year, that is 2,080 hours. A $60,000 salary divided by 2,080 gives $28.85 per hour. If you take unpaid time off, use fewer weeks — two weeks unpaid means 2,000 hours, so the same salary works out to $30.00 per hour.
What is the formula for hourly to annual salary?
Multiply your hourly rate by the hours you work per week, then multiply by the number of weeks per year. At $25 per hour for a 40-hour week: $25 x 40 x 52 = $52,000 per year. For part-time hours at 30 hours per week: $25 x 30 x 52 = $39,000 per year.
How does overtime affect my real hourly rate?
Unpaid overtime increases the hours you work without increasing your pay, which lowers your effective hourly rate. Someone earning $70,000 with a nominal rate of $33.65 per hour, but working 10 hours of unpaid overtime per week, is really earning closer to $25–$26 per hour when total hours are counted. The Real Hourly Rate tab in this calculator shows the exact figure based on your inputs.
What is the Freelance Floor Rate?
The Freelance Floor Rate is the minimum hourly rate you would need to charge as an independent contractor to match your current employment compensation — after accounting for self-employment taxes and benefits your employer was covering. It is always higher than your true hourly rate because freelancers pay both the employee and employer portions of payroll taxes (roughly 14–15% extra in the US alone).
Is it better to be paid salary or hourly?
It depends on how much overtime you work and how stable your hours are. Hourly pay means overtime is compensated; salaried exempt positions typically do not require overtime pay regardless of hours worked. If you regularly work more than 40 hours per week without extra pay, your effective hourly rate as a salaried employee may be significantly lower than your nominal rate suggests.