Hourly Rate Calculation:
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This calculator converts an annual salary to an equivalent hourly wage based on a standard 40-hour work week for 52 weeks per year (2080 hours total).
The calculator uses the simple formula:
Where:
Explanation: This provides a baseline hourly equivalent, though actual hours worked may vary.
Details: Converting annual salary to hourly rate helps compare job offers, understand true earnings, and calculate overtime pay for salaried employees.
Tips: Enter your annual salary before taxes (gross salary). The result shows your equivalent hourly wage assuming 2080 work hours per year.
Q1: Why 2080 hours?
A: This is the standard calculation (40 hours/week × 52 weeks/year). Some calculations use 2000 hours to account for 2 weeks vacation.
Q2: Does this account for unpaid time off?
A: No, this is a simple conversion. For more accuracy, adjust the denominator based on your actual work hours.
Q3: How does this differ from contractor rates?
A: Contractors typically charge 2-3× this rate to account for benefits, taxes, and business expenses they cover themselves.
Q4: What about overtime calculations?
A: For salaried non-exempt employees, overtime is typically calculated at 1.5× this hourly rate for hours over 40/week.
Q5: Does this include benefits?
A: No, this is base salary only. Total compensation including benefits would yield a higher effective hourly rate.