Hourly Rate from Salary Calculator

How it works

Hourly rate = annual salary ÷ (hours per week × weeks per year) · Effective rate = salary ÷ (yearly hours − paid days off × hours per day) · Annual salary from a paycheck = pay × 12, 24, weeks ÷ 2, weeks or days × weeks

Your true hourly rate depends on how many hours you actually work, not on the headline salary. The calculator divides your yearly pay by your yearly hours (hours per week × weeks per year). The standard 2,080-hour year (40 × 52) understates your rate if you take unpaid weeks off and overstates it if you routinely work late, so enter your real hours. If you know a paycheck rather than a salary, choose its period: monthly pay is multiplied by 12 and semimonthly by 24, while weekly, biweekly and daily pay are multiplied by the weeks (or days) you work. Turning on “Exclude paid time off” takes your paid vacation, holidays and sick days out of the hours, because your salary still pays for them; the result is the effective rate for each hour you are actually at work. Adding the yearly value of a bonus and benefits gives a total-compensation hourly rate, useful for comparing a salaried offer with hourly or contract work. An optional flat tax rate shows every figure after tax.

Worked example

A $60,000 salary worked 40 hours a week for 52 weeks is 40 × 52 = 2,080 hours, so 60,000 ÷ 2,080 = $28.85 per hour, $230.77 a day and $1,153.85 a week. Drop to 50 paid weeks and the same salary rises to $30.00 per hour. Exclude 10 paid vacation days and 10 paid holidays (160 hours) and the effective rate is 60,000 ÷ 1,920 = $31.25 for each hour actually worked. A $5,000 monthly paycheck is $60,000 a year, so it also comes to $28.85 an hour.

Frequently asked questions