Salary to Hourly Calculator

Your hourly rate is simply salary divided by the hours you actually work in a year. The familiar 2,080-hour figure is just 40 × 52, and it flatters anyone working longer weeks.

• Paid working weeks = weeks worked per year − unpaid weeks
• Annual hours = hours per week × paid working weeks
• Hourly rate = annual salary ÷ annual hours
• Weekly pay = hourly rate × hours per week
• Monthly pay = annual salary ÷ 12

The hourly rate is your gross salary divided by the hours you actually work in a year, so longer weeks lower it. The 2,080-hour figure is shown alongside it for comparison, since that is what most published conversions assume.

Common mistakes and assumptions

• Entering contracted hours instead of hours worked — that is what makes the standard conversion flattering.
• Reading these figures as take-home. Everything here is gross, before tax and deductions.
• Forgetting unpaid weeks: unpaid leave raises your effective hourly rate for the weeks you do work.

A $78,000 salary with a realistic 45-hour week and two unpaid weeks off.

1. 1Paid working weeks = 52 − 2 = 50.
2. 2Annual hours = 45 × 50 = 2,250.
3. 3Hourly rate = $78,000 ÷ 2,250 = $34.67.
4. 4At the standard 2,080 hours the same salary looks like $37.50 an hour.
5. 5Weekly gross = 45 × $34.67 = $1,560, and monthly gross = $78,000 ÷ 12 = $6,500.

Why is 2,080 hours the standard?

It is 40 hours × 52 weeks, a convention used for quoting salaries. It is only accurate if you work exactly 40 hours a week all year, so it usually overstates a salaried employee's real hourly rate.

Should I enter 52 weeks if I get paid vacation?

Yes. Paid leave is already covered by your salary, so those weeks count. Only reduce the figure for time you take without pay.

Is this take-home pay?

No, these are gross figures. Income tax, payroll tax, insurance premiums, and retirement contributions all come out afterwards, and vary by state and situation.

How do I compare a salary to a contract rate?

Contractors carry their own taxes, insurance, and unpaid time off, so a fair comparison needs a rate well above the salaried equivalent. The labor burden calculator shows what those extras really cost.