How to Convert Salary to Hourly Rate
Converting a salary to an hourly rate requires just one formula: divide your annual salary by the total hours you work per year. For a standard 40-hour week, that is 2,080 hours. For a 37.5-hour week, use 1,950. This page explains the formula, gives examples, and lets you calculate your own rate instantly.
The core formula is straightforward: Annual Salary / Total Annual Hours = Hourly Rate. The variable is your weekly hours. Most U.S. full-time workers use 40 hours (2,080/year), while UK workers often use 37.5 hours (1,950/year) and Australian workers 38 hours (1,976/year). The fewer hours you work, the higher your hourly rate for the same salary. When comparing job offers, always convert to hourly using the actual expected hours to get an accurate comparison.
Example Conversions at 40 Hours/Week
| Annual Salary | Hourly Rate |
|---|---|
| $40,000 | $19.23 |
| $50,000 | $24.04 |
| $60,000 | $28.85 |
| $80,000 | $38.46 |
| $100,000 | $48.08 |
Frequently Asked Questions
Divide your annual salary by total work hours per year. For 40hrs/wk: salary / 2,080. Example: $60,000 / 2,080 = $28.85/hr.
Yes. Use salary / (weekly hours x 52). At 37.5hrs/wk: $60,000 / 1,950 = $30.77/hr. Fewer hours = higher rate.
Use 52 weeks if your salary covers the full year including paid vacation. Use 50 if you have 2 weeks unpaid leave.
If you work more than your scheduled hours (common for salaried employees), your real rate is lower. Divide salary by actual hours worked for the true figure.
Convert both to hourly using actual expected hours. Factor in benefits, overtime eligibility, and schedule flexibility for a complete comparison.