How to Calculate Your Hourly Wage from an Annual Salary
Learn the math behind converting your yearly salary into an hourly rate, taking into account work hours and vacation time.
Converting an annual salary to an hourly wage helps you compare job offers, evaluate freelance rates, and understand the true value of your time.
The basic formula
**Hourly rate = Annual salary ÷ Total paid work hours per year**
Total paid hours = (Hours per week × Weeks per year) − Unpaid time off
Example
- Annual salary: **$52,000**
- Hours per week: **40**
- Working weeks: **50** (2 weeks unpaid vacation)
Total hours = 40 × 50 = **2,000 hours**
Hourly rate = $52,000 ÷ 2,000 = **$26/hour**
What to include
Use **gross (pre-tax) salary** when comparing offers. Adjust weeks per year for paid vs unpaid vacation. Part-time workers should use actual scheduled hours.
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