How to Calculate Your Hourly Rate
Converting an annual salary to an hourly wage is a common task for freelancers, job seekers, and employees negotiating a raise. The math is straightforward but relies on the "Standard Work Year."
The 2,080 Hour Rule
In the United States and many other countries, a standard full-time job is considered 40 hours per week for 52 weeks a year.
40 hours × 52 weeks = 2,080 working hours per year
To estimate your hourly rate quickly, simply divide your annual salary by 2,080. For example, a $50,000 salary divided by 2,080 equals approximately $24.04 per hour.
Gross Pay vs. Net Pay
This calculator displays your Gross Pay—the amount you earn before any deductions. Your actual "take-home" pay (Net Pay) will be lower due to:
- Taxes: Federal, State, and Local income taxes.
- FICA: Social Security (6.2%) and Medicare (1.45%).
- Benefits: Health insurance premiums or 401(k) retirement contributions.
Frequently Asked Questions
What is the difference between Bi-Weekly and Semi-Monthly? ▼
Bi-Weekly means you get paid every two weeks (26 paychecks per year). Semi-Monthly means you get paid twice a month, usually on the 15th and 30th (24 paychecks per year). Bi-weekly paychecks are slightly smaller, but you get two "bonus" months with 3 paychecks per year.
Does this calculator include unpaid time off? ▼
No. This calculator assumes you are paid for 52 weeks a year (including paid vacation and holidays), which is standard for salaried employees. If you are an hourly contractor who takes 2 weeks of unpaid vacation, enter "50" in the "Weeks per Year" box for a more accurate result.