Convert your monthly salary or retainer into an hourly wage.
Hourly Rate:$0.00
Daily Rate (8 hrs):$0.00
Weekly Income:$0.00
Annual Salary:$0.00
function calculateRate() {
var monthlyIncome = parseFloat(document.getElementById('monthlyIncome').value);
var hoursPerWeek = parseFloat(document.getElementById('hoursPerWeek').value);
var weeksPerYear = parseFloat(document.getElementById('weeksPerYear').value);
if (isNaN(monthlyIncome) || monthlyIncome < 0) {
alert("Please enter a valid monthly income.");
return;
}
if (isNaN(hoursPerWeek) || hoursPerWeek <= 0) {
alert("Please enter valid hours per week.");
return;
}
if (isNaN(weeksPerYear) || weeksPerYear 52) {
alert("Please enter valid weeks per year (1-52).");
return;
}
// Calculation Logic
var annualSalary = monthlyIncome * 12;
var totalAnnualHours = hoursPerWeek * weeksPerYear;
var hourlyRate = annualSalary / totalAnnualHours;
var weeklyIncome = hourlyRate * hoursPerWeek;
var dailyRate = hourlyRate * 8; // Assuming standard 8 hour day
// Display Results
document.getElementById('hourlyResult').innerText = '$' + hourlyRate.toFixed(2);
document.getElementById('dailyResult').innerText = '$' + dailyRate.toFixed(2);
document.getElementById('weeklyResult').innerText = '$' + weeklyIncome.toFixed(2);
document.getElementById('annualResult').innerText = '$' + annualSalary.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('results').style.display = 'block';
}
Understanding the Monthly to Hourly Rate Calculation
Whether you are a salaried employee curious about your true wage or a freelancer trying to determine your retainer pricing, converting a monthly income to an hourly rate is a fundamental financial exercise. This conversion helps you compare different job offers, understand the value of your time, and ensure you are being compensated fairly for the hours you put in.
Why Convert Monthly Salary to Hourly?
Monthly salaries can often obscure the actual time investment required for a job. For example, a high monthly salary might seem attractive, but if it requires 60-hour workweeks, the actual hourly wage might be lower than a job with a lower salary but standard 40-hour weeks. Breaking down your income into an hourly figure provides a standardized metric for:
Freelancers: establishing a baseline for project billing.
Employees: calculating overtime potential or comparing job offers with different schedules.
Budgeting: understanding how much one hour of your labor is worth.
The Calculation Formula
To convert a monthly figure to an hourly rate, we generally follow this three-step process:
Annualize the Income: Multiply the monthly salary by 12.
Calculate Total Annual Hours: Multiply the hours worked per week by the number of weeks worked per year (typically 52).
Divide: Divide the Total Annual Income by the Total Annual Hours.
Formula: (Monthly Salary × 12) ÷ (Hours per Week × Weeks per Year) = Hourly Rate
Real-World Example
Let's say you are offered a monthly salary of $5,000. You want to know what this equals in an hourly wage.
Monthly Income: $5,000
Annual Income: $5,000 × 12 = $60,000
Standard Schedule: 40 hours/week for 52 weeks = 2,080 hours
Calculation: $60,000 ÷ 2,080 hours
Result:$28.85 per hour
Adjusting for Unpaid Time Off
If you are a contractor or freelancer, you likely do not get paid for vacation or sick days. In this scenario, you should not calculate based on 52 weeks. Instead, you might calculate based on 48 or 50 weeks to account for time off. This will result in a higher required hourly rate to meet your monthly income goal.
Using the calculator above, you can adjust the "Weeks per Year" input to see how taking 2 or 4 weeks of unpaid vacation affects the hourly rate required to maintain your monthly income target.