Skip to content

Advanced · free · no sign-up

Hourly Rate calculator

Convert an annual salary into a true hourly rate that accounts for paid vacation weeks.

How it works Report a problem

Hourly Rate calculator

Enter your values below and press Calculate to see your result instantly.

Real Hourly Rate
$44.27/hr
MONTHLY
$7,083
WEEKLY
$1,634
DAILY
$327
Factoring in 4 weeks of vacation, your adjusted working hours are 1,920 annually.

About the Hourly Rate calculator

Convert an annual salary into a true hourly rate that accounts for paid vacation weeks.

How to use the Hourly Rate calculator

  1. Enter your Annual Salary and Hours per Week.
  2. Enter your Vacation Weeks.
  3. Press Calculate Real Rate.

Formula and method

Hourly rate = Annual salary ÷ (Hours per week × (52 − Vacation weeks))

Worked example

A $60,000 salary with 40 hours a week and 2 weeks unpaid time off works out to $30.00 an hour, compared with $28.85 if you divide by 2,080 hours.

Tips

  • Freelancers should set rates higher to cover taxes, holidays and unpaid admin time.
  • Include overtime if you regularly work extra hours.

Frequently asked questions

How many working hours are in a year?
About 2,080 for a 40-hour week, 52 weeks.