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The salary-to-hourly formula
The core formula is simple: hourly wage equals annual salary divided by total hours worked per year. Total hours worked per year equals hours per week multiplied by weeks per year. For a classic full-time schedule in the United States — 40 hours per week and 52 weeks per year — that produces 2,080 hours per year. Dividing your annual salary by 2,080 gives a quick hourly estimate: a $65,000 salary is approximately $31.25 per hour.
Paid vacation matters. If your salary contract includes two weeks of paid time off, you are paid the same $65,000 whether you take those weeks or not. That means your effective hourly rate — pay divided by hours actually worked — is higher than the standard calculation. A $65,000 salary with two weeks of paid vacation works out to $65,000 ÷ (40 × 50) = $32.50 per hour actually worked. This calculator shows both the standard and effective rate when paid vacation is entered.
Use this tool to compare job offers, benchmark freelance rates, plan a budget around take-home pay, or model changes in schedule (part-time, overtime, contract). Note that all figures are pre-tax. To model take-home pay, credit health, and monthly cash flow, try our Budget Planner, check your Debt-to-Income Calculator, and use the Loan Payment Estimator to see how income supports loan payments. Long term, track your progress with the Net Worth Calculator.