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Salary to hourly calculator

Convert a salary to an hourly rate and annual pay, or an hourly rate to a salary, and find out what each hour actually worked earns. Compare two offers, such as a salaried job and an hourly contract.

Educational simulation. Not investment advice. Results are estimates based on the data you enter and do not replace advice from a qualified professional.

Reviewed on Nov 1, 2026

Example: a $62,400 salary for 40 hours a week compared with a $32-an-hour offer with no paid time off.

Offer A
Work year

Ten paid holidays a year is common; enter yours.

Offer B (comparison)
+ Benefits, commute and real hours

Optional. Left blank, the results above do not change. Add what the employer pays on top of salary and what the job costs you in time and money.

Offer A
Offer B

Use what the employer pays for health coverage, not your share. If you work from home some days, lower the commuting days.

Your inputs stay only on this browser and are not sent anywhere. Untick to delete them.

—Hourly rate (offer A)
—

Hourly pay: stated and per hour actually worked

Stated: monthly pay ÷ monthly hours. Per hour worked: annual pay ÷ hours actually worked in the year.

Tap the chart to see the values.

What an hour is worth by weekly hours

With offer A’s monthly pay, the hourly rate for 30 to 60 hours a week.

Tap the chart to see the values.

Conversions

Gross amounts, before taxes and deductions.

Next step

Take this page’s results to another calculator with the fields already filled in.

What to charge per hour as a freelancer →Work out overtime pay →

The summary lists your inputs, results, formulas, assumptions and sources. The full report also includes the charts and interpretations, in color. In the print dialog, choose Save as PDF.

Method, assumptions and sources

Formulas

Hours per month = weekly hours × 52 ÷ 12 (calendar) or weekly hours × 5 (payroll divisor)
Stated hourly = monthly pay ÷ hours per month; annual pay = monthly pay × paychecks per year (12 + extra months)
Hours worked per year = weekly hours × (52 − vacation weeks − holidays ÷ 5); pay per hour worked = annual pay ÷ hours worked per year
Pay per hour committed (optional) = (yearly pay + 12 × monthly benefits + bonus − daily commute cost × days per week × weeks worked) ÷ (hours worked + unpaid extra hours × weeks + commuting time)
Hours-worked-only offer: annual pay = hourly rate × hours worked per year

Assumptions and limits

  • Gross amounts, before taxes and without benefits. An "hours worked only" offer B is not paid for vacation, holidays or extras and takes the same weeks off as A.
  • Overtime, shift differentials and changes in hours during the year are not included.

Official sources and references

Frequently asked questions

How do I convert a salary to an hourly rate?

Divide annual salary by the hours in a year: weekly hours × 52. For 40 hours a week that is 2,080 hours, so a $62,400 salary is $30 an hour. Monthly: weekly hours × 52 ÷ 12 = 173.3 hours.

How do I read the example result?

The $62,400 salary for 40 hours a week is $5,200 a month and $30 an hour on paper. After 2 weeks of vacation and 10 holidays you work about 1,920 hours, so each hour worked earns $32.50. Offer B, $32 an hour with no paid time off, earns $32 per hour worked and $61,440 a year.

What is pay per hour actually worked?

Annual pay divided by the hours you actually work, after vacation and holidays. It shows what each hour of effort really earns and lets you compare a salaried job with paid time off against an hourly contract.

Why compare annual pay too?

Because an offer can pay more per hour but fewer hours. Pay per hour worked tells you the value of your time; annual pay tells you whether the budget works. Look at both before deciding.

Does the calculator include taxes?

No. All amounts are gross. Income tax, payroll taxes and, for contractors, self-employment tax and business costs will reduce take-home pay. Benefits such as health insurance and retirement matches are not included either.

What does “extra months of pay” mean?

Some jobs pay a guaranteed bonus or extra paycheck each year. Enter it in months of salary: 1 for a one-month bonus, 0.5 for half a month. Leave 0 if you are paid 12 times a year.

When should I talk to a professional?

If you are choosing between employee and contractor status, a tax professional can explain self-employment taxes, deductions and benefits. This calculator is an educational simulation and does not replace that advice.

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How to convert a salary to an hourly rate (and back)

Turning a salary into an hourly rate depends on how many hours a month you count. The usual way is the calendar: weekly hours × 52 weeks ÷ 12 months. For a 40-hour week that is 173.3 hours a month, or 2,080 hours a year; a $62,400 salary is $30 an hour.

Stated rate and real rate

A salaried job usually pays for vacation and holidays you do not work. With 2 weeks of vacation and 10 holidays, you work about 1,920 hours a year, so the same $62,400 is $32.50 per hour actually worked. That is the number to compare with an hourly contract.

Comparing offers

A $32-an-hour contract with no paid time off pays $32 per hour worked and $61,440 a year if you take the same time off. Here the salary wins on both counts. Also weigh health insurance, retirement contributions and self-employment taxes, which this calculator does not include.

Long hours cheapen your time

At the same salary, working more hours lowers the value of each hour. Regular unpaid overtime is, in practice, a cut in your hourly pay.