Hourly Wage Calculator
Convert your annual, monthly, or weekly salary into an hourly rate.
Your Calculated Hourly Wage:
How to Calculate Your Hourly Wage
Understanding your hourly wage is essential for budgeting, comparing job offers, or determining your worth as a freelancer. While many jobs list pay as a gross annual salary, converting that figure into an hourly rate provides a clearer picture of your actual earnings per hour of labor.
The Basic Formula
The standard formula for converting an annual salary into an hourly wage is:
Hourly Wage = Annual Salary / (Hours worked per week × Weeks worked per year)
Steps for Manual Calculation
- Determine Total Weekly Hours: For most full-time employees, this is 40 hours.
- Determine Working Weeks: A standard year has 52 weeks. If you take two weeks of unpaid leave, use 50.
- Multiply Hours by Weeks: This gives you your total working hours per year (e.g., 40 × 52 = 2,080 hours).
- Divide Salary by Total Hours: Divide your gross annual income by the result from step 3.
Practical Example
Suppose you earn a salary of $60,000 per year and work a standard 40-hour week with no unpaid time off (52 weeks).
- Total annual hours: 40 hours × 52 weeks = 2,080 hours.
- Hourly rate: $60,000 / 2,080 = $28.85 per hour.
Factors That Influence the Calculation
When using an hourly wage calculator, remember to account for these variables:
- Unpaid Leave: If you take weeks off without pay, your hourly rate effectively increases if your annual salary stays the same, or your total annual income decreases.
- Overtime: If you work more than 40 hours but are on a fixed salary (exempt), your actual hourly rate decreases.
- Pre-tax vs. Post-tax: Most calculations use "Gross" (pre-tax) income. Your "Net" (take-home) hourly rate will be significantly lower after taxes and deductions.