How to convert a salary into an hourly wage
A salary tells you what you earn per year, but not what your time is worth. Converting to an hourly rate helps you compare a salaried offer against an hourly job, judge whether extra hours are worth it, or price freelance work fairly against your day job.
Hourly wage = annual salary ÷ (hours per week × paid weeks per year)
Most full-time schedules use 40 hours and 52 paid weeks, giving 2,080 paid hours per year. If you regularly work longer hours, enter your real average — it gives a more honest picture of your effective hourly rate.
Worked example
Pay periods explained
- Weekly: salary ÷ 52.
- Biweekly: salary ÷ 26 — every other week.
- Semimonthly: salary ÷ 24 — usually the 15th and the last day of the month.
- Monthly: salary ÷ 12.
- Daily: salary ÷ (paid weeks × days per week), the pay for one working day.
Why it matters
Knowing your hourly rate makes trade-offs clearer. If a job pays $5,000 more but requires 6 extra hours a week, the hourly rate can actually fall. Use the salary comparison calculator to compare two offers side by side, or the unpaid day off calculator to see what a day of unpaid leave costs you.
Results are gross figures and do not include benefits like health insurance or retirement matching, which can add significant value to a salaried role.