Convert annual salary to hourly rate — or hourly wage to annual income. See full pay breakdown across all time periods.
Whether you're comparing job offers, setting freelance rates, or evaluating a raise, understanding how to convert between annual salary and hourly rate is a foundational financial skill. The standard formula is simple: Hourly Rate = Annual Salary ÷ (Hours per Week × Weeks Worked).
However, the real picture is more nuanced. Salaried employees get the same pay regardless of overtime hours worked, while hourly workers get paid for every hour including overtime. Our calculator accounts for your actual working schedule and PTO to give you the most accurate comparison.
The standard assumption: 40 hours/week × 50 weeks = 2,000 working hours/year. So $60,000 ÷ 2,000 = $30/hour. This is a useful quick-estimate shortcut: divide your annual salary by 2,000 for an approximate hourly rate.
If you have 15 PTO days, your actual working hours drop from 2,080 to 1,960. This raises your effective hourly rate. A $60,000 salary with 15 PTO days = $30.61/hour, not $28.85 — a meaningful difference for comparison.
Our calculator supports all major world currencies. When comparing international offers, also factor in purchasing power parity — $80K in San Francisco has very different real value than $80K in Austin or London.
To match a $60K salaried job, a freelancer needs to charge more: $30/hr × 1.3 (overhead buffer) = ~$39/hr minimum, before accounting for self-employment taxes (~15%), unpaid time finding clients, and no benefits.