Salary ↔ Hourly Converter
Convert between annual salary and hourly rate in both directions. Adjust for PTO, add benefits value, estimate taxes, and compare part-time scenarios.
Assumptions
- 40 hrs/wk × 52 wks = 2,080 hrs/year
- Daily rate based on 5-day work week
- Monthly = annual ÷ 12
How to Convert Salary to Hourly
Divide your annual salary by total hours worked per year.
Annual Salary
Start with your gross annual salary. For example, $60,000 per year.
Total Hours
Multiply hours per week by weeks per year. Standard: 40 × 52 = 2,080.
Divide
$60,000 ÷ 2,080 = $28.85/hour. Factor in PTO for your true rate.
Understanding Your True Hourly Rate
Paid time off means you work fewer hours for the same salary — your effective rate is higher.
| Scenario | Salary | Hours/Wk | Weeks/Yr | Effective Rate |
|---|---|---|---|---|
| No PTO | $60,000 | 40 | 52 | $28.85/hr |
| 2 weeks PTO | $60,000 | 40 | 50 | $30.00/hr |
| 4 weeks PTO | $60,000 | 40 | 48 | $31.25/hr |
| + Benefits | $70,000* | 40 | 50 | $35.00/hr |
* $60,000 salary + $10,000 estimated benefits value
Frequently Asked Questions
Common questions about salary and hourly rate conversions.
Divide your annual salary by total hours worked per year. Total hours = hours per week × weeks per year. Standard: 40 × 52 = 2,080 hours. Example: $60,000 ÷ 2,080 = $28.85/hour.
PTO increases your effective hourly rate because you earn the same salary for fewer hours worked. With 2 weeks PTO (50 working weeks): $60,000 ÷ (40 × 50) = $30/hour instead of $28.85.
Gross pay is your salary before deductions. Net (take-home) pay is what you actually receive after federal and state taxes, Social Security (6.2%), and Medicare (1.45%). Use the tax estimation feature above.
Multiply your hourly rate by hours per week by weeks per year. Example: $25/hour × 40 hours × 52 weeks = $52,000/year.