The formula
Hourly rate = Annual salary ÷ (hours per week × weeks per year)
A standard full-time year is 40 hours × 52 weeks = 2,080 hours. So a $60,000 salary works out to $60,000 ÷ 2,080 = $28.85 an hour. Going the other way, $25 an hour × 2,080 = $52,000 a year.
Common salaries as hourly rates (40 h/week, 52 weeks)
| Annual salary | Hourly | Monthly |
|---|---|---|
| $40,000 | $19.23 | $3,333 |
| $50,000 | $24.04 | $4,167 |
| $60,000 | $28.85 | $5,000 |
| $75,000 | $36.06 | $6,250 |
| $100,000 | $48.08 | $8,333 |
Biweekly vs semi-monthly
Biweekly means every two weeks – 26 paychecks a year. Semi-monthly means twice a month – 24 paychecks. Annual pay is the same; biweekly checks are slightly smaller but two months a year have three paydays.
Going freelance? Don't just divide your old salary
An employee's hourly equivalent ignores costs a freelancer has to cover: self-employment tax, health insurance, software, unpaid admin time and gaps between projects. Most freelancers need to charge 1.5–2× their old hourly equivalent. Work out your real number with the freelance hourly rate calculator and the self-employment tax calculator.
Frequently asked questions
How many working hours are in a year?
With a 40-hour week and 52 paid weeks, 2,080 hours. With two unpaid weeks off, 2,000 hours.
What is $50,000 a year per hour?
About $24.04 an hour, based on 40 hours a week for 52 weeks.
What is $20 an hour per year?
$41,600 a year at 40 hours a week for 52 weeks, or $3,467 a month before tax.
Does this include taxes?
No. All figures are gross pay before income tax, Social Security, Medicare and other deductions.
