Salary to Hourly Calculator

Calculate your hourly, weekly, or monthly pay for your salary using the calculator below.



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How to Convert Salary to Hourly Pay

Generally speaking, there are two ways an employee can get paid: with an annual salary or an hourly wage.

While there might be other non-cash benefits that come with working a job—such as insurance, vacation days, company perks, and more—these are the two most common ways for people to get paid in cash as part of their annual income.

There are also plenty of payment structures that offer elements of both. Hybrid pay systems (part hourly and part salary), as well as commission-based payment systems, are just two of these examples.

If you are comparing different job offers or trying to negotiate a contract, it would be helpful to know how to convert a salary into hourly pay. When all else is equal, it will be easier to identify which is the better compensation for the time you worked and which payment structure will work best for you.

In this guide, we will discuss the most important things to know about converting a salary into an hourly wage.

Steps to Convert a Salary to an Hourly Wage

If you are currently a salaried employee or are considering becoming a salaried employee, you may want to know how much you make an hour.

Business owners and contractors who want to determine if working independently is a financially justifiable decision would also want to know their hourly pay.

Fortunately, converting a salary into an hourly wage is fairly straightforward. You need to identify the following variables:

  • Your current salary
  • The average number of hours you work per week (including the weeks you don’t work at all, which will bring the average down a bit)
  • The number of weeks in the period you are measuring for (if you are measuring for a year, that number would be 52)

Salary to Hourly Wage Formula

You can use this formula to calculate your hourly wage:

hourly wage = salary / hours per week × 52

For example, let’s suppose that your annual salary is $60,000 and, on average, you work 36 hours per week.

While your typical work week is 40 hours long, you took a few weeks off for vacation and sick days, so the average number of hours you are actually working is a little bit less than your typical work week.

Using the formula above, we can solve:

hourly wage = $60,000 / 36 × 52
hourly wage = $60,000 / 1,872
hourly wage = $32.05 per hour

So, in the example above, you would be making $32.05 per hour.

The 1,872 figure in the calculation above represents the total number of hours you worked in the given year.

If you already have that information, you can actually use an even simpler formula to make your final calculation.

hourly wage = total salary / total hours worked

For example, suppose your annual salary is $80,000 and you are already aware that the total number of hours you worked that year was 2,000 (a fairly typical figure).

In this case, you can use the simplified formula resulting in the following wage:

hourly wage = $80,000 / 2,000 hours
hourly wage = $40 per hour

In this example the equivalent wage would be $40 per hour.

These formulas both work regardless of how many hours you worked in a given year or what your salary might be.

Of course, there can sometimes be other factors that can complicate things.

For example, if your employer offers health insurance coverage that would otherwise cost $8,000 per year for you to get on your own, you might want to consider adding that figure into your final calculation. This will make it easier to compare compensation packages that are entirely based in cash.

These formulas do not account for variables, such as overtime pay and the effects of taxes and other possible withholdings, so you may need to consider that for an overall picture of your compensation.

How to Decide Which Structure is Best

When comparing different jobs or different compensation packages, there are a lot of things you will want to think about.

Taking some time to assign values to non-cash components of your compensation—healthcare, retirement contributions, vacation days, reimbursements, etc.—will make it easier to compare options that have different structures.

There are also other factors to consider, such as salaried employees may have to work more than 40 hours in some weeks without proportionate compensation. Wage employees, on the other hand, might not be able to access as many benefits as their salaried counterparts.

Both systems have their fair share of pros and cons, but in either case, learning how to convert a salary to an hourly wage (and vice versa) can be beneficial.