Annual Salary to Hourly Rate Calculator
Divide your annual gross salary by the total hours you actually work each year to find your true hourly rate. Adjust the hours per week, weeks per year and paid time off to match your contract.
hrs
wks
wks
Gross earnings per hour worked
28.85
per hourWork weeks
100%
PTO / holidays
0%
- 1
Weeks worked per year
52 − 0 PTO = 52 - 2
Total hours per year
40 hrs/wk × 52 wks = 2,080 - 3
Hourly rate
60,000 ÷ 2,080 = 28.85
How does this calculator work?
Hourly rate = Annual salary ÷ (Hours per week × Weeks worked per year). For a standard 40 hr/week, 52-week year with no PTO: $60,000 ÷ 2,080 = $28.85/hr. Subtract PTO weeks from the denominator if your salary covers paid leave — your effective hourly rate rises because you are being paid for time you are not at work.
Formula
How this is calculated
To convert an annual salary to an hourly rate you simply divide the total annual pay by the total hours worked in the year. The total hours is hours per week multiplied by the number of weeks actually worked — which is weeks per year minus any paid leave weeks (since the salary already covers those, they reduce the denominator and therefore increase the calculated hourly rate).
For example, a $60,000 annual salary with 40 hours per week and 2 weeks PTO gives 40 × (52 – 2) = 2,000 hours worked, so the hourly rate is $60,000 ÷ 2,000 = $30/hr. If you set PTO to 0 the formula uses all 52 weeks, giving $28.85/hr — the difference shows what your employer is effectively paying per hour of actual work.
All figures are gross (before income tax and deductions). The daily rate assumes a standard 8-hour day within your weekly hours; the weekly figure uses worked weeks only. Use these numbers to compare job offers, set freelance rates or verify that a contract role pays at least as much as your salaried role.
Frequently asked questions
It depends on your purpose. If you want to know what your employer pays per hour of actual work, subtract PTO weeks from the denominator — your hourly rate goes up because those weeks are paid without requiring your time. If you want to compare to a freelance rate (where you only earn when you work), use PTO = 0 so the denominator is the full year.
A standard full-time year is 40 hrs/week × 52 weeks = 2,080 hours. After subtracting two weeks of PTO (80 hrs) you get 2,000 hours actually worked. Salaried employees often use 2,080 as the benchmark; $50,000 ÷ 2,080 ≈ $24.04/hr.
This calculator uses gross salary (pre-tax). Your effective take-home hourly rate is lower because income tax, social security, health insurance and other deductions reduce the amount you actually receive. Use a take-home pay calculator to estimate net amounts.
Also known as
TG we-Calculate Editorial Team. (2026). Annual Salary to Hourly Rate Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/annual-salary-per-hour-calculator
TG we-Calculate Editorial Team. "Annual Salary to Hourly Rate Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/annual-salary-per-hour-calculator.
TG we-Calculate Editorial Team, "Annual Salary to Hourly Rate Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/annual-salary-per-hour-calculator
@misc{wecalculate_annual_salary_per_hour_calculator, title = {Annual Salary to Hourly Rate Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/annual-salary-per-hour-calculator}}, year = {2026}, note = {TG we-Calculate} }
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