The Quick Answer
Hourly Rate = Annual Salary ÷ (Hours per Week × Weeks per Year)
For a standard full-time job at 40 hours/week, 52 weeks/year:
Hourly Rate = Annual Salary ÷ 2,080
A $60,000 salary: $60,000 ÷ 2,080 = $28.85/hour
That's the formula. The rest of this guide covers when and why the inputs change — and what to watch for when comparing job offers.
Why 2,080 Hours?
The "magic number" for a standard US full-time work year:
- 40 hours per week × 52 weeks per year = 2,080 hours
This assumes paid vacation — you're compensated for all 52 weeks even if you take time off. If you have unpaid leave, the denominator shrinks:
| Unpaid Time Off | Weeks Used | Total Hours | Effect on Rate |
|---|---|---|---|
| None | 52 | 2,080 | Baseline |
| 1 week | 51 | 2,040 | +2% per hour |
| 2 weeks | 50 | 2,000 | +4% per hour |
| 4 weeks | 48 | 1,920 | +8% per hour |
Fewer hours worked for the same salary → higher hourly rate.
Worked Examples
Example 1: Standard Full-Time
Scenario: $72,000 salary, 40 hours/week, 52 weeks/year
$72,000 ÷ 2,080 = $34.62/hour
- Monthly: $6,000
- Weekly: $1,385
- Daily (5-day week): $277
Example 2: Adjusting for Unpaid Leave
Scenario: $55,000 salary, 40 hours/week, 3 weeks unpaid vacation (49 weeks)
$55,000 ÷ (40 × 49) = $55,000 ÷ 1,960 = $28.06/hour
Compare to 52 paid weeks: $55,000 ÷ 2,080 = $26.44/hour.
The per-hour rate is higher with unpaid leave, but total annual pay stays the same.
Example 3: Heavy Workload
Scenario: $85,000 salary, but you consistently work 50 hours/week
$85,000 ÷ (50 × 52) = $85,000 ÷ 2,600 = $32.69/hour
At 40 hours/week, it would be $40.87/hour. Those extra 10 hours per week cost you $8.18/hour in effective pay — a 20% reduction.
Example 4: Part-Time Salaried
Scenario: $38,000 salary, 30 hours/week, 52 weeks
$38,000 ÷ (30 × 52) = $38,000 ÷ 1,560 = $24.36/hour
Quick Reference Table
All figures assume 40 hours/week, 52 weeks/year (2,080 hours). Amounts are gross (before taxes).
| Annual Salary | Hourly Rate | Monthly | Weekly | Daily (5-day) |
|---|---|---|---|---|
| $30,000 | $14.42 | $2,500 | $577 | $115 |
| $35,000 | $16.83 | $2,917 | $673 | $135 |
| $40,000 | $19.23 | $3,333 | $769 | $154 |
| $45,000 | $21.63 | $3,750 | $865 | $173 |
| $50,000 | $24.04 | $4,167 | $962 | $192 |
| $55,000 | $26.44 | $4,583 | $1,058 | $212 |
| $60,000 | $28.85 | $5,000 | $1,154 | $231 |
| $65,000 | $31.25 | $5,417 | $1,250 | $250 |
| $70,000 | $33.65 | $5,833 | $1,346 | $269 |
| $75,000 | $36.06 | $6,250 | $1,442 | $288 |
| $80,000 | $38.46 | $6,667 | $1,538 | $308 |
| $90,000 | $43.27 | $7,500 | $1,731 | $346 |
| $100,000 | $48.08 | $8,333 | $1,923 | $385 |
| $120,000 | $57.69 | $10,000 | $2,308 | $462 |
| $150,000 | $72.12 | $12,500 | $2,885 | $577 |
Comparing Salaried vs. Hourly Job Offers
The hourly number alone isn't enough. Consider the full picture:
Step 1: Convert Both to the Same Unit
- Salaried offer: $62,000/year → $62,000 ÷ 2,080 = $29.81/hour
- Hourly offer: $32.00/hour → $32.00 × 2,080 = $66,560/year
The hourly offer looks higher in raw numbers.
Step 2: Factor in Benefits
Salaried positions often include benefits worth 20-40% of base salary:
| Benefit | Estimated Annual Value |
|---|---|
| Health insurance (employer share) | $6,000 – $15,000 |
| 401(k) match (3-6%) | $1,860 – $3,720 |
| Paid vacation (2 weeks) | ~$2,385 |
| Paid sick days (5 days) | ~$1,192 |
| Total estimated value | $11,437 – $22,297 |
So the $62,000 salary with benefits could be worth $73,000 – $84,000 in total compensation, or $35–$40/hour equivalent.
The $32/hour job without benefits stays at $66,560.
Step 3: Consider Actual Hours
If the salaried role expects 50 hours/week, the effective rate drops:
$62,000 ÷ (50 × 52) = $23.85/hour
That changes the comparison significantly. Always estimate realistic hours, not just the official 40.
What Salary-to-Hourly Doesn't Tell You
This conversion is useful but has limits:
- It's gross pay. Federal, state, and local taxes reduce take-home pay. Social Security (6.2%) and Medicare (1.45%) are also deducted.
- It ignores bonuses. Performance bonuses, signing bonuses, and profit-sharing aren't captured unless you add them to the base number.
- It doesn't capture equity. Stock options or RSUs can substantially change total compensation for tech and startup roles.
- Cost of living matters. $50/hour in rural Iowa stretches much further than $50/hour in San Francisco.
Practical Uses
Evaluating Overtime Worth
If you're salaried non-exempt and eligible for overtime:
Base: $58,000 ÷ 2,080 = $27.88/hour
Overtime rate (1.5×): $41.83/hour
Ten overtime hours per week for a month: 10 × 4 × $41.83 = $1,673 extra.
Setting a Freelance Floor
Your salaried hourly rate is not your freelance rate. Freelancers cover:
- Self-employment tax (~15.3%)
- Health insurance (100% self-funded)
- Retirement contributions (no employer match)
- Unpaid vacation, sick days, and downtime
- Equipment and software
Rule of thumb: Multiply your salaried hourly rate by 1.4–1.6 for a comparable freelance rate.
$30/hour salaried → $42–$48/hour freelance minimum.
Spotting Unpaid Overtime
If your contract says 40 hours but you routinely work 50+, your effective hourly rate drops. Calculate it honestly to understand what you're actually earning per hour of effort.
Common Mistakes
-
Using take-home pay instead of gross salary. The formula needs your pre-tax annual salary — the number on your offer letter, not your bank deposit.
-
Forgetting to adjust weeks for unpaid leave. If you take unpaid time off, reduce weeks from 52 to reflect actual paid weeks.
-
Ignoring actual hours worked. The formula assumes you work exactly the hours you entered. If you regularly exceed them, your real hourly rate is lower.
-
Comparing salary to hourly without benefits. A $28/hour salary with full benefits is often worth more than a $34/hour contract position without them.
Salary to Hourly Calculator
Enter your annual salary, hours per week, and weeks per year to instantly see your hourly rate with monthly, weekly, and daily breakdowns.
Open CalculatorFrequently Asked Questions
How do I convert an annual salary to an hourly rate?
Divide your annual salary by the total hours worked per year. For a standard 40-hour week across 52 weeks, divide by 2,080. Example: $60,000 ÷ 2,080 = $28.85 per hour.
Why is 2,080 used to convert salary to hourly?
2,080 is the number of work hours in a standard full-time year: 40 hours per week × 52 weeks = 2,080 hours. It assumes paid vacation (you're paid for all 52 weeks).
What is a $50,000 salary per hour?
$50,000 per year equals $24.04 per hour for a standard 40-hour, 52-week schedule. That's $4,167 per month or $962 per week before taxes.
What is a $100,000 salary per hour?
$100,000 per year equals $48.08 per hour at 40 hours/week over 52 weeks. Monthly, that's $8,333 before taxes.
Should I use 52 weeks or 50 weeks for the conversion?
Use 52 weeks if you have paid vacation, since you're paid for all weeks. Use 50 (or fewer) if you have unpaid time off. Fewer weeks means a higher hourly rate for the same salary.
Does the salary-to-hourly formula account for taxes?
No. The formula converts gross salary to a gross hourly rate. Take-home pay will be lower after federal and state income tax, Social Security, Medicare, and any benefit premiums.
How does working more than 40 hours affect my hourly rate?
Your effective hourly rate drops. A $70,000 salary at 40 hours/week is $33.65/hour. At 50 hours/week, it drops to $26.92/hour — a 20% decrease per hour worked.
How do I compare a salaried job to an hourly job?
Convert the salary to hourly using this formula, then factor in benefits. A salaried position with health insurance and retirement matching can be worth 20-40% more than the base hourly rate suggests.
How do I calculate daily pay from a salary?
Divide your annual salary by 260 (52 weeks × 5 workdays). For example, $75,000 ÷ 260 = $288.46 per day. Adjust the number of workdays if your schedule differs.
What is a good hourly rate in the United States?
As of 2025, the median hourly wage in the US is roughly $23-$24/hour (equivalent to about $48,000-$50,000 annually). Rates above $30/hour place you above the 60th percentile, and $50+/hour is well above average. Location and industry heavily influence what counts as "good."
Related Tools
- Salary to Hourly Calculator — instantly convert any annual salary to hourly
- Hourly to Salary Calculator — convert hourly wage to annual salary
- Net Salary Calculator — estimate take-home pay after taxes
- Overtime Calculator — calculate overtime pay at 1.5× or 2× your rate
- Freelance Rate Calculator — figure out what to charge as a freelancer