Salary to Hourly Calculator
Convert your annual salary into an equivalent hourly wage based on your actual work schedule, vacation days, and paid holidays. Useful when comparing salaried offers to hourly contract rates.
About this calculator
This calculator converts a salaried compensation figure into a true hourly wage by accounting for the hours you actually work — not just a generic 2,080-hour year. The formula is: hourly rate = annualSalary / (weeksPerYear × hoursPerWeek − ((vacationDays + holidays) / 5) × hoursPerWeek). The term ((vacationDays + holidays) / 5) × hoursPerWeek converts time-off days into equivalent hours by assuming a 5-day workweek, then subtracts those from your total annual hours. This distinction matters because two jobs with the same $70,000 salary can yield very different hourly rates if one offers 3 weeks of PTO and the other offers none. Understanding your real hourly rate helps you evaluate freelance bids, overtime fairness, and side-by-side job offer comparisons.
How to use
Suppose you earn $65,000/year, work 40 hours/week, 52 weeks/year, and receive 10 vacation days and 8 paid holidays. 1. Total time-off hours: (10 + 8) / 5 × 40 = 144 hours 2. Total working hours: (52 × 40) − 144 = 2,080 − 144 = 1,936 hours 3. Hourly rate: $65,000 / 1,936 ≈ $33.57/hour Enter each value into the corresponding field and the calculator returns your effective hourly wage instantly.
Frequently asked questions
How do vacation days and holidays affect my hourly rate calculation?
Vacation days and paid holidays are days you are paid but not working, so they reduce your actual productive hours. The calculator converts those days into hours using your daily schedule (days ÷ 5 × hoursPerWeek) and subtracts them from your annual working hours. This means the more paid time off you have, the higher your effective hourly rate, since the same salary is spread over fewer worked hours. Ignoring PTO can understate your real compensation by several dollars per hour.
What is the difference between a standard 2080-hour year and this calculator's approach?
The commonly cited 2,080-hour work year assumes 52 weeks × 40 hours with zero time off. In reality, most employees take vacation and observe holidays, meaning they work fewer hours. This calculator subtracts your specific paid time off from 2,080 (or your custom total) to find the hours you actually work. That adjusted figure gives a more accurate — and typically higher — hourly equivalent than the simplified 2,080-hour method.
When should I use a salary to hourly calculator for job comparisons?
Use this calculator whenever you are weighing a salaried position against a contract or hourly role, negotiating a raise, or evaluating freelance project pricing. A $75,000 salary sounds better than $34/hour until you realize the salaried role offers no PTO and the hourly role includes benefits. Converting everything to a common hourly figure removes the apples-to-oranges problem. It is also helpful for verifying that your overtime pay, if applicable, is being calculated on the correct base rate.