Salary to Hourly Calculator
Need to know your hourly rate from a yearly salary? This tool makes it easy.
Great for job offers, freelancers, and contract work.
How This Calculator Works
This tool calculates your hourly wage based on:
- Annual salary (before taxes)
- Weekly work hours (default: 40)
- Vacation days (default: 10)
Common Uses
Job Offers
Compare salaries vs. hourly rates.
Freelancers
Set competitive hourly rates.
Side Gigs
Calculate part-time earnings.
Why Trust This Tool?
✔ Uses standard wage calculations (no rounding errors)
✔ Built by financial professionals
✔ No data stored – calculations happen in your browser
Salary to Hourly Calculator : The Complete Conversion Guide
Introduction: Why Convert Salary to Hourly?
Many job offers list pay as an annual salary, but you might need to know your hourly rate for:
- Comparing part-time vs. full-time jobs
- Calculating overtime pay
- Budgeting side gigs
- Negotiating freelance contracts
This guide explains 4 different methods to convert salary to hourly wages with real examples.
Method 1: Basic Salary to Hourly Formula
Standard Calculation
The basic formula is:
[
\text{Hourly Wage} = \frac{\text{Annual Salary}}{\text{Work Hours per Year}}
]
Where:
- Full-time work hours = 2,080 per year (40 hrs × 52 weeks)
- Part-time work hours = Your actual hours
Example:
$50,000 salary ÷ 2,080 hours = $24.04/hour
Adjusting for Paid Time Off (PTO)
If you get 2 weeks PTO, subtract those hours:
[
2,080 – (40 hrs × 2) = 2,000 \ working hours
]
$50,000 ÷ 2,000 = $25/hour
Method 2: Hourly Rate with Overtime
Time-and-a-Half Calculation
Overtime pay (for hours > 40/week) is 1.5× regular rate.
Example:
- Base hourly wage: $20
- Overtime rate: $20 × 1.5 = $30/hour
- If you work 45 hours:
- 40 hrs × $20 = $800
- 5 hrs × $30 = $150
- Total weekly pay = $950
Method 3: Freelance/Side Gig Hourly Rate
Freelancers should charge 2-3× their salaried rate to account for:
- Self-employment taxes
- No benefits (health insurance, 401k)
- Unpaid admin work
Example:
- Corporate job pays $25/hour
- Freelance rate = $25 × 2.5 = $62.50/hour
Method 4: Reverse Calculation (Hourly to Salary)
Want to see what salary your hourly wage equals?
[
Annual Salary = Hourly Wage × 2,080
]
Example:
$15/hour × 2,080 = $31,200/year
Method 5: Tax Implications
Salary:
- Consistent withholding
- Easier budgeting
Hourly:
- Variable paychecks
- Potential tax surprises
- Need to track deductions
Pro Tip:
Use IRS Form W-4 calculator for hourly workers
6. State-by-State Comparisons
Minimum Wage Variations:
- California: $16/hour
- Texas: $7.25/hour
- New York: $15/hour
Overtime Laws:
7 states require daily overtime (e.g., CA after 8 hours)
7. Overtime Exemptions
FLSA Exemptions Apply When:
- Salary ≥ $35,568/year
- Executive/Professional role
- Administrative duties
Common Mistakes:
Assuming all salaried workers are exempt
8. Benefits Considerations
Hourly Workers Often Lose:
- Health insurance
- Retirement matching
- Paid leave
Cost Equivalent:
Add 25-40% to compare hourly to salary
9. Case Studies
Case 1:
Teacher’s $50,000 salary = $24/hour
But working 60 hours/week = $16/hour actual rate
Case 2:
Nurse making $35/hour with overtime
= $72,800 base + $18,200 OT = $91,000 total
Salary vs. Hourly Pay: Key Differences
| Factor | Salary | Hourly |
|---|---|---|
| Overtime Pay | Usually exempt | 1.5× after 40 hours |
| Income Stability | Fixed paycheck | Varies by hours worked |
| Benefits | Often included | Rare for part-time |
| Schedule Flexibility | Less common | More flexible schedules |
FAQs
Q: Is $20/hour a good wage?
A: It depends on location. $20/hr = $41,600/year before taxes.
Q: How much is $50,000 a year hourly?
A: $24.04/hour (2,080 work hours).
Q: Do salaried employees get overtime?
A: Usually no, unless they’re non-exempt under FLSA rules.
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