Convert annual salary to hourly wage, or hourly rate to yearly income. See your pay broken down every way.
Converting an annual salary to an hourly wage is straightforward. The formula is:
For a standard full-time worker putting in 40 hours per week for 52 weeks, the total work hours in a year is 2,080. So a $55,000 annual salary works out to $55,000 / 2,080 = $26.44 per hour.
If you take unpaid time off, adjust the weeks per year accordingly. Two weeks of unpaid vacation means 50 working weeks, which changes the math to $55,000 / 2,000 = $27.50 per hour. The fewer weeks you work, the higher your effective hourly rate needs to be to reach the same annual income.
The reverse calculation is just as simple:
If you earn $20 per hour and work 40 hours per week for 52 weeks, your annual income is $20 x 40 x 52 = $41,600. This is your gross (pre-tax) income. Your actual take-home pay will be lower after federal and state income taxes, Social Security, and Medicare deductions.
Understanding your effective hourly rate is critical when comparing job offers. A salaried position at $60,000 per year sounds great, but if the role routinely demands 50-hour weeks, your effective hourly rate is $23.08 rather than the $28.85 you would earn at 40 hours. Meanwhile, an hourly position at $26 per hour with consistent 40-hour weeks actually pays you more per hour of your time.
This calculator is also useful for freelancers setting their rates. If you want to earn the equivalent of a $70,000 salary, you need to account for self-employment tax, health insurance, and unpaid time off. Many freelancers use a rule of thumb of working about 48 billable weeks and add 25% to 30% on top of the base hourly rate to cover those additional costs.