Salary to Hourly Calculator
Convert your annual salary into a true hourly equivalent by accounting for actual hours worked after vacation days and paid holidays are removed. Use it when comparing a salaried offer to an hourly contract or freelance rate.
About this calculator
A raw division of annual salary by 2,080 (52 weeks × 40 hours) overstates your true hourly rate because it ignores time off you are paid for but not working. A more accurate approach subtracts the hours equivalent of vacation and holiday days before dividing. Since most work days are part of a 5-day week, each day off equals one-fifth of a week. The formula is: Hourly Rate = annualSalary / ((workWeeks × hoursPerWeek) − ((vacationDays + holidays) / 5)). For example, with 10 vacation days and 10 holidays, you lose 4 weeks of working time, making each actual working hour worth more than the simple estimate suggests. This rate is especially useful when comparing salaried positions to hourly or freelance alternatives.
How to use
Suppose your annual salary is $65,000, you work 52 weeks at 40 hours per week, take 10 vacation days, and have 10 paid holidays. Total days off = 20; hours equivalent = 20 / 5 = 4 weeks off. Denominator = (52 × 40) − 4 = 2,080 − 4 = 2,076 hours. Hourly rate = $65,000 / 2,076 ≈ $31.31/hr. Without accounting for days off, the naive rate would be $65,000 / 2,080 = $31.25/hr — a small but meaningful difference that grows with more time off.
Frequently asked questions
Why does accounting for vacation days change my effective hourly rate?
When you take paid vacation or holidays, you receive your salary but perform no productive hours. This means each hour you actually work is effectively compensating you for those idle paid days as well. Removing those hours from the denominator gives a truer picture of what your employer pays per unit of output. For professionals evaluating freelance or contract work, this distinction matters because contractors typically receive no paid time off and must price their rate accordingly.
How many work hours per year does the average full-time US employee actually work?
The standard full-time schedule is 2,080 hours per year (52 weeks × 40 hours). However, the average US worker takes about 11 vacation days and observes 10 federal holidays, reducing actual working hours to roughly 1,904–1,960 hours per year. When you factor in sick leave and other absences, the true figure can drop further. Using this calculator with your specific time-off benefits gives a more realistic denominator than the generic 2,080-hour assumption.
When should I use a salary-to-hourly calculator to compare job offers?
Use this calculator any time you are comparing a salaried position to an hourly role, freelance contract, or consulting arrangement. A $70,000 salary may sound better than a $35/hr contract, but once you calculate the true hourly rate — accounting for paid time off, benefits, and actual hours worked — the comparison becomes much clearer. It is also useful when negotiating raises, quoting client projects, or deciding whether to accept overtime-heavy salaried positions where your effective hourly rate drops significantly.