Salary to Hourly Calculator
Convert your annual salary into an hourly wage, weekly paycheck, and monthly income.
Enter Your Details
Your Results
How to Convert Salary to Hourly Wage
Whether you are considering a new job offer, switching from a salaried role to a contract position, or just curious about your time's value, converting your salary to an hourly rate is a fundamental financial exercise.
The standard formula relies on the "2,080 Rule." A typical full-time year consists of 52 weeks. If you work 40 hours each week, that equals 2,080 billable hours per year.
The Golden Formula
Hourly Rate = Annual Salary / (Hours/Week × 52)
Quick Conversion Chart (40-Hour Week)
| Annual Salary | Hourly Rate | Weekly Pay (Gross) | Monthly Pay (Gross) |
|---|---|---|---|
| $30,000 | $14.42 | $577 | $2,500 |
| $40,000 | $19.23 | $769 | $3,333 |
| $50,000 | $24.04 | $962 | $4,167 |
| $60,000 | $28.85 | $1,154 | $5,000 |
| $75,000 | $36.06 | $1,442 | $6,250 |
| $100,000 | $48.08 | $1,923 | $8,333 |
Real Life Scenarios
Scenario 1: Negotiating a Contractor Rate
Situation: You earn $80,000 as a full-time employee with benefits. You want to switch to contracting. What should your hourly rate be?
Analysis: Simply converting $80,000 to hourly ($38.46) is a mistake. Contractors must pay their own self-employment tax (extra 7.65%), health insurance, and have no paid time off.
Tip: A general rule of thumb is to take your salaried hourly equivalent and multiply by 1.3x to 1.5x to cover these extra costs. So, you should ask for $50 - $58/hour.
Scenario 2: Comparing Two Job Offers
Situation: Job A offers $65,000/year (Salaried, 45 hours/week exp.). Job B offers $30/hour (Hourly, 40 hours/week + overtime).
Analysis:
Job A effective rate: $65,000 / (45 * 52) = $27.77/hour.
Job B rate: $30.00/hour.
Verdict: Job B pays more per hour of your life, plus you get paid extra if you work overtime. Job A dilutes your value by demanding unpaid overtime.
Common Mistakes When Calculating Hourly Rate
- Ignoring Unpaid Overtime: If you are salaried and work 50 hours a week consistently, your "real" hourly rate is much lower than the paper calculation.
- Forgetting Paid Time Off (PTO): If you get 4 weeks of paid vacation, you are actually only working 48 weeks for that salary. This technically makes your "working hourly rate" higher.
$60,000 / (48 weeks * 40 hours) = $31.25/hour (vs $28.85 standard). - Not Factoring in Bonuses: If you get a guaranteed 10% annual bonus, add that to your base salary before converting.
Related Tools for Deeper Analysis
Once you know your hourly rate, you might want to:
- See what that money looks like after taxes with our After-Tax Calculator.
- Calculate how much extra you'd make working weekends with the Overtime Calculator.
- See how a $5/hour raise impacts your yearly income with the Pay Raise Calculator.
Frequently Asked Questions
Disclaimer
This calculator is for informational purposes only and should not be considered tax or legal advice. While we strive for accuracy, tax laws change frequently and individual circumstances vary. Please consult a qualified tax professional or financial advisor for your specific situation.