Salary to Hourly Converter
Convert an annual salary into an effective hourly rate, accounting for hours per week, vacation weeks and bonus.
Quick answer: Convert an annual salary into an effective hourly rate, accounting for hours per week, vacation weeks and bonus.
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Frequently asked questions
- How is the hourly rate calculated?
- (Annual salary + bonus) divided by (working weeks × hours/week). Default working weeks = 52 − your vacation weeks.
- Should I include unpaid breaks?
- Use the hours you're actually paid for. A 9-to-5 with an unpaid lunch is usually 37.5 hrs/week, not 40.
- What about overtime?
- Set hours per week to your actual average — including overtime — for a true effective hourly rate. Comparing salaried vs. contract roles? Use 40 to keep it apples-to-apples.
- Should bonus be included?
- Only if it's reasonably guaranteed. Discretionary or stock-based bonuses fluctuate year to year; including them can flatter the rate.
- How do I compare a salaried role with a contract rate?
- Convert the salary to hourly using 40 h/week and 0 vacation weeks. The contractor rate needs to be ~30–50% higher to cover lost benefits, taxes and unpaid time off.
- Is this gross or net?
- Whatever you put in. Enter pre-tax salary for gross hourly; enter take-home pay for net hourly.
- Are my numbers uploaded?
- No. Calculations run in your browser only.
- Why does adding vacation weeks raise my hourly rate?
- Because you're earning the same total salary across fewer working hours. Two weeks of paid vacation with a 40 h/week schedule reduces working hours from 2,080 to 2,000 — about a 4% bump in effective rate.
- How is monthly different from salary / 12?
- It's the same: annual / 12, regardless of vacation weeks. Vacation weeks change the hourly equivalent, not monthly take-home.
- What's the standard 'full-time' year?
- Most US/EU calculations use 2,080 hours (40 × 52). Including standard vacation lowers it to ~1,920 hours.