How do you convert an annual salary to an hourly rate?

Divide the annual salary by the total hours worked per year (hours per week × weeks worked per year). For example, $80,000 ÷ (40 hours × 52 weeks) = $38.46 per hour.

Does this calculator account for unpaid time off?

Yes — set weeks per year below 52 to account for unpaid vacation, holidays, or leave. Fewer paid weeks raises the effective hourly rate for the same salary.

How is the daily rate calculated?

The daily rate assumes a standard 5-day work week: it multiplies the hourly rate by your hours per week divided by 5. For a 40-hour week that's 8 hours per day.

Is this the same as my take-home pay?

No. This tool converts gross salary into equivalent gross pay rates. Use the Salary & Paycheck Calculator to estimate take-home pay after taxes and deductions.

What if I work part-time hours?

Enter your actual weekly hours (e.g. 20 or 30) instead of 40. The hourly rate calculation adjusts automatically, though your daily/weekly rates will scale down accordingly.

Hourly Rate Calculator — Free Online Tool

About this calculator

An hourly rate calculator converts salary to an equivalent hourly rate (or the reverse) using work-hours assumptions.

Who should use it: Job seekers comparing salaried and hourly offers.

When to use it: Use it when offers use different pay bases but similar expected hours.

Salary to hourly rate

Hourly rate = Annual salary ÷ (Hours per week × Weeks per year)

The hourly rate is the annual salary spread evenly across every hour actually worked in the year. Daily rate assumes a 5-day work week (hourly rate × hours per week ÷ 5); weekly rate is hourly rate × hours per week; monthly rate is the annual salary ÷ 12.

Step-by-step

Enter your annual salary
Use your gross (pre-tax) annual salary, not take-home pay.
Set your hours per week
Full-time is typically 40 hours; adjust for part-time or non-standard schedules (1–168).
Set weeks worked per year
Use 52 for a full year, or fewer if you take unpaid time off (1–52).
Review the rate breakdown
See your equivalent hourly, daily, weekly, and monthly pay rates side by side.

Worked example: Sample $80,000 salary

$80,000 annual salary, working 40 hours per week for all 52 weeks of the year.

Total hours per year: 40 × 52 = 2,080 hours
Hourly rate: $80,000 ÷ 2,080 = $38.46/hour
Daily rate (8-hour day): $38.46 × 8 = $307.69/day
Weekly rate: $38.46 × 40 = $1,538.46/week

Monthly rate ≈ $6,666.67; annual salary stays $80,000.

How to interpret the result

Salaried roles may include unpaid extra hours — equivalent hourly rate falls if hours rise without more pay.

Key definitions

Hourly rate: Gross pay earned for one hour of work.
Weeks per year: Number of weeks actually worked and paid — 52 minus any unpaid time off.
Gross pay: Pay before taxes, benefits, and other deductions are subtracted.

Common use cases

Comparing a salaried job offer to an hourly contract rate
Estimating freelance or contractor billing rates
Understanding the value of unpaid time off
Budgeting daily or weekly income from an annual salary

Tips

Use your actual paid weeks per year (52 minus unpaid leave) for the most accurate hourly rate.
Compare hourly rates only on a gross (pre-tax) basis — benefits and taxes vary by employer.
Freelancers should typically charge a higher hourly rate than salaried equivalents to cover self-employment taxes and unpaid downtime.

Common mistakes

Assuming every job uses a 40-hour, 52-week schedule

Fix: Adjust hours per week and weeks per year to match your actual schedule before comparing rates.

Confusing gross hourly rate with take-home pay

Fix: This calculator estimates gross pay rates; use a paycheck calculator to estimate net pay after taxes.

Using a 7-day week to compute the daily rate

Fix: The daily rate here assumes a standard 5-day work week — adjust manually if your schedule differs.

Limitations

Benefits and bonus value are outside base rate conversion.
Exempt vs non-exempt status affects overtime eligibility.