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Salary to Hourly Calculator

What's your real hourly rate? Factor in PTO, holidays, and commute time to see what you actually earn per hour.

Your Compensation

$20k$500k

Working Hours

Include actual hours worked, not just "official" hours

Paid Time Off

Include Commute Time?

Your Effective Hourly Rate

$40.76

per hour of actual work

Standard calculation (52 weeks × 40h)$36.06/hr
Accounting for 30 days off$40.76/hr

Pay Breakdown

Per day$326.09
Per week$1,442.31
Bi-weekly$2,884.62
Per month$6,250.00

Actual Working Hours

Standard year (52 × 40h)2080 hours
After time off1840 hours
Difference-240 hours

Insights

  • Your PTO adds $288.27 per day off to your hourly rate

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How We Calculate

Standard Formula

Hourly Rate = Annual Salary ÷ (52 weeks × hours/week)

This is the standard calculation, but it assumes you work every week of the year with no time off.

Effective Formula

Effective Rate = Salary ÷ Actual Working Hours

When you factor in PTO, holidays, and sick days, you work fewer hours—meaning your effective hourly rate is higher.

Frequently Asked Questions

Why is my effective rate higher than the standard rate?

Because you're getting paid for 52 weeks but only working a portion of them. Your PTO, holidays, and sick days are paid time—meaning you earn your full salary while working fewer hours, which increases your effective hourly rate.

Should I include commute time?

It depends on your perspective. You're not paid for commuting, but it is time dedicated to work. Including it gives you a more realistic picture of the time commitment your job requires versus what you earn.

What about benefits and taxes?

This calculator uses gross salary. Your take-home pay after taxes will be lower. However, if you have employer-paid benefits (health insurance, 401k match), your total compensation is higher than your salary alone.

How does this compare to freelance rates?

Freelancers need to charge 1.5-2× more than an equivalent employee hourly rate to cover self-employment taxes, health insurance, no PTO, equipment, and unpaid admin time. If your effective rate is $50/hr, a freelancer would need to charge $75-100/hr for equivalent compensation.