How to Convert Salary to Hourly (And Vice Versa)
Converting between an annual salary and an hourly wage is a standard calculation based on the number of hours worked in a year.
The Standard 2,080 Hour Work Year
A standard full-time employee in the United States works 40 hours a week for 52 weeks a year.
40 hours × 52 weeks = 2,080 hours per yearTo find the hourly rate: Hourly = Annual Salary ÷ 2,080
To find the annual salary: Salary = Hourly Wage × 2,080
Unpaid Time Off Changes the Math
If you are an hourly contractor and you take two weeks of unpaid vacation, you only work 50 weeks in the year. Your total working hours drop to 2,000 (40 hours × 50 weeks).
You can use the inputs in the calculator above to adjust the weeks per year to account for unpaid vacation or sick time to get a more accurate projection of your actual earnings.
Freelance vs. Employment
If you are transitioning from a salaried job to freelance work, you should not simply convert your salary to an hourly rate using this calculator and charge that to clients. Freelancers must charge significantly more per hour to cover self-employment taxes, health insurance, software, and unbillable admin time.
If you are a freelancer, use our Freelance Rate Calculator instead to find a profitable billing rate.
Frequently Asked Questions
How do I convert my annual salary to an hourly rate?
Divide your annual salary by the total number of hours you work in a year. The standard calculation uses 2,080 hours (40 hours/week × 52 weeks). For example, a $75,000 salary divided by 2,080 equals approximately $36.06 per hour.
What is the standard 2,080 hour work year?
The standard full-time work year in the United States assumes 40 hours of work per week for 52 weeks, totaling 2,080 hours. This is the baseline used by most employers when calculating equivalent hourly rates from annual salaries.
How does unpaid time off affect my hourly rate?
If you take unpaid time off, you work fewer hours per year. This means your effective hourly rate changes. For example, if you work only 50 weeks (2,000 hours), a $75,000 salary equals $37.50 per hour instead of $36.06.
How do I convert an hourly wage back to annual salary?
Multiply your hourly wage by the number of hours you work per week, then multiply by the number of weeks you work per year. For example, $35/hour × 40 hours × 52 weeks = $72,800 per year.
Why is freelance rate different from salary conversion?
Freelancers need to charge significantly more per hour than a simple salary conversion suggests. They must cover self-employment taxes, health insurance, software costs, and unbillable admin time. Use our dedicated freelance rate calculator for accurate pricing.