Hourly Rate Calculator
Convert an annual salary to hourly, daily, and monthly rates for budgeting, contractor quotes, or salary comparisons.
Gross annual salary or contract value
Average working hours per week
Working weeks after vacation and holidays
Results
Hourly Rate
$37.50
Daily Rate (8 hours)
$300.00
Monthly Equivalent
$6,250.00
Take it further
Small Business Starter Bundle
Running a business from spreadsheets in your head? Our Small Business Bundle includes client tracker, invoice template, expense log, P&L, and project planner.
How This Calculator Works
Converting an annual salary to an hourly rate is useful for comparing job offers, understanding your true earning rate, or quoting contractor work. The standard formula divides annual salary by total working hours, but the key variable is how many weeks you actually work per year.
Using 52 weeks overstates your hourly rate because nobody works every single week. After subtracting vacation, holidays, and sick days, most employees work 48-50 weeks per year. This calculator lets you set the exact number for your situation.
The daily rate assumes a standard 8-hour workday, which is useful for day-rate contractor quotes. The monthly equivalent is simply the annual salary divided by 12, which helps with budgeting and comparing monthly compensation packages.
Frequently Asked Questions
Why use 50 weeks instead of 52?
Most employees get at least 2 weeks off for vacation and holidays. Using 50 weeks gives a more accurate picture of your effective hourly earnings. If you get more time off, reduce this number further.
How is this different from the freelance rate calculator?
This calculator converts a known salary to hourly for comparison purposes. The freelance rate calculator works backward from income goals and accounts for expenses and non-billable time. Use this one for salary comparisons, the other for setting your freelance rate.
Does this include overtime?
No. If you regularly work overtime, your effective hourly rate is lower than this calculation shows. For salaried employees, more hours at the same pay means a lower per-hour value. Factor in actual hours worked for an honest comparison.