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No. 07Pricing & Pay

Hourly Rate Calculator

Convert an annual salary into hourly, daily, weekly, biweekly and monthly pay — or work backward from an hourly rate to a yearly figure.

I know my…

Use 52 if paid time off is included in the salary.

Results

Hourly rate

$31.25

Annual salary
$65,000
Monthly
$5,416.67
Biweekly
$2,500.00
Weekly
$1,250.00
DailyWeekly hours over 5 days
$250.00

Based on 2,080 paid hours per year. Figures are before tax.

Show the calculation
  1. Paid hours / year40 × 52= 2,080
  2. Hourly rate$65,000.00 ÷ 2,080= $31.25
  3. Monthly$65,000.00 ÷ 12= $5,416.67

Hourly equivalent of this salary

What $65,000 a year works out to at different schedules.

Hourly equivalent of this salary: rows are Hours / week, columns are Paid weeks
Hours / week ↓ · Paid weeks →46 wks48 wks50 wks52 wks
32$44.16$42.32$40.63$39.06
35$40.37$38.69$37.14$35.71
37.5$37.68$36.11$34.67$33.33
40$35.33$33.85$32.50$31.25
45$31.40$30.09$28.89$27.78

How it’s calculated

Paid Hours per Year
equals Hours per Week × Paid Weeks per Year
Hourly Rate
equals Annual Salary ÷ Paid Hours per Year
Annual Pay
equals Hourly Rate × Paid Hours per Year
Monthly Pay
equals Annual Pay ÷ 12

Worked example

An office manager is offered $58,500 a year for a 37.5-hour week, with paid vacation.

  1. Paid hours = 37.5 × 52 = 1,950 hours
  2. Hourly rate = $58,500 ÷ 1,950 = $30.00
  3. Weekly = $1,125.00; biweekly = $2,250.00; monthly = $4,875.00

At a 40-hour week the same salary would work out to $28.13 an hour — so the hours behind a salary matter when comparing offers.

Salaried employee vs. freelancer

This calculator converts pay at the same hours. If you’re self-employed, dividing a target salary by 2,080 hours will undercharge: you pay your own taxes, benefits and expenses, and not every hour is billable. Use the Freelance Rate Calculator instead. Employers can see what a salary really costs with the Employee Cost Calculator.

Assumptions and limitations

  • All figures are gross pay, before income tax, payroll deductions and benefits contributions.
  • Use 52 paid weeks when vacation and holidays are paid. Use fewer if some weeks are unpaid.
  • “Daily” divides weekly pay across 5 working days. Monthly divides annual pay by 12, so it is not the same as 4 × weekly pay.
  • Overtime, bonuses and shift premiums are not included.

Results are estimates for information only and are not financial, tax or legal advice. See our disclaimer.