Why convert between salary and hourly pay?
Job adverts, contracts and freelance quotes use different units. One employer offers $52,000 a year, an agency pays $25 an hour and a part-time role mentions a monthly figure. Converting everything to the same unit is the only fair way to compare. The hourly rate is especially useful when you compare jobs with different working hours, or when you weigh a salaried job against freelance work.
The formulas
The calculator uses 52 weeks per year and 12 months per year:
hourly rate = annual salary ÷ (52 × hours per week)
annual salary = hourly rate × hours per week × 52
monthly salary = annual salary ÷ 12
weekly pay = hourly rate × hours per week
Example: $52,000 a year at 40 hours a week is 52,000 ÷ 2,080 = $25.00 an hour. The weekly pay is $1,000 and the monthly salary $4,333.33.
Example in reverse: a part-time job pays £14.50 an hour for 24 hours a week. That is £348 a week, £18,096 a year or £1,508 a month.
Common annual-to-hourly conversions
| Annual salary | 37.5 hours/week | 40 hours/week |
|---|---|---|
| 30,000 | 15.38 | 14.42 |
| 40,000 | 20.51 | 19.23 |
| 50,000 | 25.64 | 24.04 |
| 60,000 | 30.77 | 28.85 |
| 75,000 | 38.46 | 36.06 |
| 100,000 | 51.28 | 48.08 |
A quick rule of thumb for a 40-hour week: divide the annual salary by 2,000 for a rough hourly rate, or double the hourly rate and add three zeros for a rough annual salary ($20/hour ≈ $40,000/year).
Paid holidays and overtime
The formula assumes you are paid for all 52 weeks, which is how salaried jobs work: paid vacation and public holidays are included. If you are paid only for hours actually worked (many hourly jobs and most freelance work), your effective annual income is lower. A freelancer who wants the same income as a $52,000 salaried employee needs to account for unpaid holidays, sick days, time spent finding clients and their own pension and insurance costs. In practice freelance rates are often 1.5 to 2 times the equivalent employee hourly rate.
Overtime is not included. In the US, non-exempt employees are typically paid 1.5 times their regular rate for hours over 40 a week; in other countries rules differ by contract or collective agreement.
Working in the Netherlands?
Dutch contracts often state a monthly salary excluding the 8% holiday allowance and are based on 36, 38 or 40 hours a week. Enter the monthly salary and contractual hours to find your hourly rate, and use the Dutch salary calculator to estimate net pay or the holiday allowance calculator for the annual payout.
Tips
- Compare total compensation. Bonuses, a 13th month, employer pension contributions and health insurance can be worth thousands a year.
- Track your actual hours. A salaried job with regular unpaid overtime has a lower real hourly rate. Our hours calculator adds up shifts and breaks.
- Negotiating a raise? Use the percentage change calculator to express an offer as a percentage increase.
Frequently asked questions
How do I convert an annual salary to an hourly wage?
Divide the annual salary by 52 and then by your weekly hours. For $60,000 at 40 hours a week: 60,000 ÷ 52 ÷ 40 = $28.85 an hour.
How many working hours are in a year?
At 40 hours a week, 52 × 40 = 2,080 hours. At 37.5 hours a week it is 1,950 hours. These figures include paid holidays.
Is $25 an hour a good wage?
At 40 hours a week it equals $52,000 a year. Whether that is good depends on where you live, your industry and the benefits that come with the job.
What hourly rate should a freelancer charge?
More than the employee rate for the same work, because freelancers pay for their own holidays, sick leave, insurance, pension, equipment and unbilled hours. Many freelancers start from 1.5 to 2 times the comparable employee rate.
Does the calculator account for taxes?
No. All figures are gross (before tax). For an estimate of Dutch net pay, use the Dutch salary calculator.
Last reviewed: 2026-10-06. Results are estimates for information only.