Comprehensive Guide
Learn more in our Personal Finance Guide.
How it works
Converting a salary to an hourly rate divides annual pay by the hours it truly requires: a $65,000 salary on a 40-hour week across 52 weeks works out to $31.25 an hour. The calculator also breaks the salary into monthly, biweekly and weekly amounts, and reports the total annual hours doing the earning. The denominator decides the story. Dividing by the nominal 2,080 hours treats every hour alike, but salaried exempt roles routinely run 45-55 real hours — at 50 hours the same $65,000 is $25 an hour, and every additional unpaid hour quietly cheapens the last. Running weeks below 52 does the opposite trick for paid leave: on a 48-working-week basis the salary converts to nearly $34 an hour during the weeks actually worked, which is the honest way to feel what vacation is worth. The output doubles as the comparison rate for hourly offers, freelance day-rates and the overtime question — an exempt salary pays nothing extra for hour 46.Formula
Hourly = salary / (hours/week x weeks/year) | Weekly = salary / weeks | Biweekly = salary / 26
Tips
- $65,000 at 40 hours and 52 weeks is exactly $31.25 an hour.
- Use real hours, not scheduled ones, to price a demanding salaried job.
- Cut weeks to 48-50 to see the rate during the weeks you actually work.
- Exempt salaries owe no overtime — the effective rate falls with every free hour worked.
- Compare the result against contractor day-rates before calling a salary generous.