Convert your annual or monthly salary to an exact hourly rate — accounting for real working hours, vacation days, and taxes.
How to convert salary to hourly rate
To convert an annual salary to an hourly rate, divide your yearly salary by the number of hours you actually work per year — not just 52 × 40. You need to subtract vacation days and public holidays to get your true hourly rate. This calculator does all of that automatically.
What’s the formula?
Hourly rate = Annual salary ÷ (Working weeks × Hours per week). Working weeks = 52 minus vacation weeks minus holiday weeks. For example, a $60,000 salary with 2 weeks vacation and 10 holidays works out to about $30.30/hour — not $28.85 as a simple ÷2080 would suggest.
Why does the tax rate matter?
Your gross hourly rate tells you what your time is worth before tax. Your net hourly rate tells you what you actually take home. The difference can be significant — at a 30% tax rate, a $30/hr gross becomes only $21/hr net. This is useful when comparing job offers or deciding whether to freelance.
Frequently Asked Questions
How many working hours are in a year?
A standard full-time year has 2,080 hours (52 weeks × 40 hours). But after subtracting 15 vacation days and 10 public holidays, you’re down to about 1,880 actual working hours — which raises your effective hourly rate.
What’s a good hourly rate for a $50,000 salary?
A $50,000 annual salary works out to roughly $24–$26/hour depending on your vacation and holidays. After a 25% tax rate, your net hourly rate drops to around $18–$20/hour.
How do I use this to set freelance rates?
If you want to match your employed salary as a freelancer, you need to charge significantly more per hour — because you pay both sides of payroll taxes, have no paid vacation, and need to cover your own benefits. A common rule is to multiply your equivalent employee hourly rate by 2–3x.
Is overtime included?
No — this calculator uses your stated hours per week as a flat rate. If you regularly work overtime without extra pay, your actual hourly rate is lower than the calculated figure.
What tax rate should I use?
Use your effective (average) tax rate, not your marginal rate. For most Americans earning $40,000–$100,000, the effective federal tax rate is roughly 12–22%. Add state taxes for a more accurate net figure.