How to Calculate Your Hourly Rate From Salary

January 8, 2025·4 min read

Converting a salary into an hourly rate is one of the most useful pay calculations you can do. It lets you compare a salaried job offer against contract or hourly work, sanity-check whether your time is fairly paid, and price freelance projects. The math is simple once you fix two assumptions: how many hours you work per week and how many weeks you work per year.

The formula

Hourly rate = Annual salary ÷ (hours per week × weeks per year). For a standard full-time schedule that is 40 hours a week for all 52 weeks, which gives 2,080 working hours in a year.

Hourly rate = Annual salary ÷ 2,080 (for standard 40 hr/week, 52 weeks)

A worked example

Say you earn $60,000 a year and work a standard full-time schedule. Divide $60,000 by 2,080 hours and you get about $28.85 per hour. Change the schedule and the answer moves: at 37.5 paid hours a week (1,950 hours/year) the same salary works out to roughly $30.77 per hour.

Annual salaryHourly (2,080 hrs)Hourly (1,950 hrs)
$40,000$19.23$20.51
$60,000$28.85$30.77
$80,000$38.46$41.03
$100,000$48.08$51.28

The assumptions that change your answer

  • Paid time off: if your salary already covers vacation, your effective hourly rate for hours actually worked is higher.
  • Overtime: salaried roles often involve unpaid extra hours, which lowers your real hourly rate.
  • Part-time schedules: fewer hours per week raise the hourly figure for the same annual pay.

The fastest way to get an exact number for your own schedule is to use a calculator that lets you set your own hours and weeks.

Run your own numbers

Convert salary to hourly and estimate your take-home pay in seconds.

Open the calculator

Frequently asked questions

What is the quick formula to convert salary to hourly?

Divide the annual salary by the total hours worked in a year. For a 40-hour week across 52 weeks, that is 2,080 hours, so hourly rate = salary ÷ 2,080.

How many work hours are in a year?

A standard full-time year is 2,080 hours (40 hours × 52 weeks). If you take unpaid time off or work part-time, the number is lower.

Is $60,000 a year a good hourly wage?

$60,000 a year is about $28.85 per hour on a standard full-time schedule. Whether that is good depends on your location, cost of living and industry.