CalcKit

Hourly Rate Calculator

Convert an annual salary into an equivalent hourly rate.

Enter your values

Gross annual pay before tax.

Typical paid hours each week.

Include paid time off when comparing employee pay.

Result

Equivalent hourly rate$30.00
Annual hours
2,000
Weekly pay
$1,200.00
Annual salary
$60,000.00

This is the gross salary divided by paid working hours. It does not include benefits, overtime premiums or employer costs.

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Formula

Hourly rate = Annual salary ÷ (Hours per week × Paid weeks per year)

Worked example

A $60,000 salary with 40 hours per week and 50 paid weeks.

The equivalent gross hourly rate is $30.00.

How to use

  1. Enter gross annual salary.
  2. Enter paid weekly hours and weeks.
  3. Calculate the equivalent rate before tax.

Related calculators

Freelance RateSet an hourly rate around your income, expenses and billable time.Billable HoursEstimate annual billable hours after admin and non-client work.Project PriceBuild a quote from your hours, rate, expenses and contingency.

Frequently asked questions

Should paid holidays count?

For a pay equivalence comparison, include paid holiday weeks. For a rate per hour actually worked, exclude time off and label the comparison accordingly.

Can I use this as my freelance rate?

It is only a starting point. Freelance work also needs to cover expenses, unpaid time and taxes; use Freelance Rate for that estimate.