Free Tool

Salary to Hourly Calculator

Instantly convert your hourly rate to annual salary or your yearly salary to hourly wage. See weekly, monthly, and annual breakdowns.

Standard full-time is 40 hours

52 weeks = no unpaid time off

Hourly
$24.04

per hour

Weekly
$961.54

per week

Monthly
$4,166.67

per month

Annual
$50,000.00

per year

How to Calculate Hourly Rate from Salary

To convert an annual salary to an hourly rate, divide your yearly pay by the total number of hours you work in a year. This gives you your hourly earning rate, which is useful for comparing job offers or calculating hourly paycheck amounts.

Hourly Rate = Annual Salary ÷ Weeks per Year ÷ Hours per Week

Example: A $50,000 annual salary with 40-hour weeks equals $24.04 per hour ($50,000 ÷ 52 ÷ 40).

How to Calculate Annual Salary from Hourly Rate

Converting your hourly rate to an annual salary helps you understand your total yearly compensation. Simply multiply your hourly wage by the number of hours you work per week, then by the number of weeks you work per year.

Annual Salary = Hourly Rate × Hours per Week × Weeks per Year

Example: A $25/hour rate at 40 hours per week equals $52,000 annually ($25 × 40 × 52).

Salary vs Hourly: What to Consider

When comparing salary and hourly positions, consider more than just the base pay. Salaried employees often receive benefits like health insurance, retirement contributions, and paid time off that add significant value to total compensation. However, hourly workers may earn overtime pay (typically 1.5x their rate) for hours worked beyond 40 per week.

Tax implications also differ: salaried employees have taxes withheld consistently, while freelancers and contractors must manage their own tax payments. Consider your work-life balance preferences, job security needs, and career goals when choosing between salary and hourly compensation structures.

Frequently Asked Questions

What is a good hourly rate?

A "good" hourly rate depends on your industry, experience, and location. In the US, the median hourly wage is around $23-25. Skilled professionals like developers, designers, and consultants typically charge $50-150+ per hour. Consider your expenses, desired annual income, and market rates when setting your rate.

How do I calculate overtime pay?

Overtime pay is typically calculated at 1.5x your regular hourly rate for hours worked beyond 40 per week (in the US). For example, if you earn $20/hour, your overtime rate would be $30/hour. Some states and industries have different rules. Overtime calculator coming soon.

Should I take salary or hourly?

Salary positions offer predictable income and often include benefits like health insurance, retirement plans, and paid time off. Hourly positions provide flexibility and overtime eligibility but may have less job security. Consider your financial needs, work style, and career goals when deciding.

Should I charge extra for rush services?

Yes, rush fees are standard practice for freelancers and contractors. A typical rush fee is 25-50% on top of your regular rate for projects with tight deadlines. This compensates for the disruption to your schedule and the pressure of accelerated delivery.

Planning your freelance business?

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