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Salary CalculatorThe core formula
All salary conversions start from one relationship:
Hourly rate = Annual salary ÷ Working hours per year
And its inverse: Annual salary = Hourly rate × Working hours per year
At a standard full-time schedule (40 hours/week, 52 weeks/year):
Working hours per year = 40 × 52 = 2,080 hours
This is the number you will see used everywhere. But it assumes no unpaid time off — adjust it for your actual situation.
All pay period conversions
| Period | Periods/year | Formula from annual | $60,000 example |
|---|---|---|---|
| Monthly | 12 | Annual ÷ 12 | $5,000.00 |
| Biweekly | 26 | Annual ÷ 26 | $2,307.69 |
| Semi-monthly | 24 | Annual ÷ 24 | $2,500.00 |
| Weekly | 52 | Annual ÷ 52 | $1,153.85 |
| Daily | 260 | Annual ÷ 260 | $230.77 |
| Hourly | 2,080 | Annual ÷ 2,080 | $28.85 |
Note: 260 working days = 52 weeks × 5 days. If your schedule differs, change the denominator: 50 weeks × 5 days = 250 days, for instance.
Quick reference: common salaries to hourly
| Annual salary | Hourly rate | Monthly |
|---|---|---|
| $30,000 | $14.42 | $2,500.00 |
| $45,000 | $21.63 | $3,750.00 |
| $60,000 | $28.85 | $5,000.00 |
| $75,000 | $36.06 | $6,250.00 |
| $100,000 | $48.08 | $8,333.33 |
| $120,000 | $57.69 | $10,000.00 |
| $150,000 | $72.12 | $12,500.00 |
Biweekly vs. semi-monthly: the confusion most people have
Biweekly and semi-monthly sound the same but are different:
- Biweekly = every two weeks = 26 pay periods/year. Most common US payroll schedule.
- Semi-monthly = twice per month (e.g., 1st and 15th) = 24 pay periods/year.
For a $60,000 salary: biweekly = $2,307.69 per check, semi-monthly = $2,500. The biweekly amount is lower per paycheck, but you get two extra checks per year (in the months that have three pay Fridays).
How to set your hourly rate as a freelancer
Converting from salary to hourly is only the starting point for freelancers. A full-time employee at $60,000 earns $28.85/hour — but that same rate as a freelancer would leave you significantly worse off. Here is why:
- No paid time off. Vacation, sick days, and holidays are unpaid. A typical employee gets 15–25 paid days per year. That is 5–10% of annual time that a freelancer does not get paid for.
- No benefits. Health insurance, retirement matching, and other perks add 20–30% to a typical compensation package above base salary.
- Unbillable time. Sales, admin, invoicing, and downtime between projects are not billed. Expect 30–40% of your working hours to be non-billable when starting out.
- Self-employment taxes. In the US, self-employed individuals pay both the employee and employer share of FICA (around 15.3%), compared to roughly 7.65% for an employee.
A practical multiplier: to match a $60,000 salaried position as a freelancer, you likely need $80,000–$100,000 in annual billings — which means charging significantly more per hour.
The ÷ 1,000 rule for freelancers
A quick approximation many consultants use: divide your target annual income by 1,000 to get a floor hourly rate. For $80,000: $80,000 ÷ 1,000 = $80/hour. This implicitly builds in a buffer for unbillable time and expenses. It is a starting point, not a ceiling — adjust based on your market, experience, and demand.
How hours per week changes everything
The standard formula assumes 40 hours per week. Change that and every conversion changes with it:
| Hours/week | Hours/year | $60,000 → hourly |
|---|---|---|
| 20 (part-time) | 1,040 | $57.69 |
| 30 | 1,560 | $38.46 |
| 40 (standard) | 2,080 | $28.85 |
| 50 | 2,600 | $23.08 |
A part-time worker earning $30,000 on a 20-hour week has the same hourly rate as a full-timer at $60,000. The salary calculator above lets you adjust hours/week so all conversions reflect your actual schedule.
Frequently asked questions
What hourly rate equals $100,000/year?
At 40h/week and 52 weeks: $100,000 ÷ 2,080 = $48.08/hour. With 2 weeks vacation (50 working weeks): $100,000 ÷ 2,000 = $50.00/hour.
Is a $20/hour job better than a $40,000/year job?
At 40h/week full-time: $20/hour × 2,080 = $41,600/year — slightly better. But if the hourly role is part-time or has gaps between shifts, the annual total could be lower. Always compare total annual earnings, not just the per-hour figure.
How do I calculate my daily rate from annual salary?
Divide by working days per year. Standard: annual ÷ 260. For $75,000: $75,000 ÷ 260 = $288.46/day. Contractors often quote daily rates — this conversion is especially useful when comparing contract and permanent roles.
Does the salary calculator account for taxes?
The optional tax rate field applies a flat percentage to show approximate net pay. It is not a precise tax calculation — use a dedicated tax tool or a professional for accurate after-tax figures. The purpose here is quick orientation, not financial planning.
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