Hourly to Salary Converter
Convert between an hourly wage and an annual salary in either direction — so you can compare a job offer, a contract rate, and a permanent salary on the same footing. Based on your actual hours and working weeks.
How to use this calculator
- Choose the direction — hourly to salary, or salary to hourly.
- Enter the amount, your hours per week and working weeks per year.
- Read the equivalent across annual, monthly, weekly and daily.
Formula used
The bridge between hourly and salary is your total annual hours. Working weeks matter: 52 assumes no time off, while a realistic figure (say 46–48) accounts for holiday and gives a higher effective hourly rate for the same salary.
Example calculation
25/hour, 40 hours/week, 48 weeks: 25 × 1,920 = 48,000/year (4,000/month).
Reverse: a 48,000 salary over those same hours is 25/hour. Cut to 46 working weeks and the same salary is worth ~26/hour.
Comparing hourly and salaried pay
Converting between hourly and annual pay is essential for comparing offers, but the honest comparison needs care because the two aren't equivalent even at the same headline number. A salaried permanent role usually bundles in paid holiday, sick leave, pension contributions and other benefits, while an hourly contractor is typically paid only for hours worked and must cover their own time off, taxes and benefits from that rate.
That's why a contractor's hourly rate should be meaningfully higher than a simple salary-divided-by-hours figure to be truly comparable — a common rule of thumb adds a substantial premium. The working-weeks input is where this surfaces: assuming 52 weeks overstates a salaried worker's effective hourly rate (they're paid during holidays), while a realistic figure reflects actual hours. Use this for gross comparisons, then weigh benefits, security and time off on top.
Why use this calculator?
- Compare a contract rate against a permanent salary.
- Convert an offer into monthly and weekly take-home planning figures.
- See how time off changes your effective hourly rate.
Frequently asked questions
How do I convert hourly pay to salary?
Multiply the hourly rate by hours per week and by working weeks per year. 25/hour at 40 hours over 48 weeks is 48,000. Using 52 weeks assumes no time off and gives a higher figure.
What hourly rate equals a given salary?
Divide the annual salary by your total annual hours (hours per week × working weeks). A 50,000 salary over 1,920 hours is about 26/hour. Fewer working weeks raises the effective hourly rate.
Should a contractor charge more than the equivalent salary?
Yes — considerably. A contractor's rate must cover unpaid holidays and sick days, self-employment taxes, pension, insurance and periods without work. A simple salary-to-hourly figure understates what a freelancer needs to charge to match a salaried package.