How the conversion works
The standard formula divides annual salary by the number of hours worked in a year. For a 40-hour week and 52 weeks, that is 2,080 hours, so a $65,000 salary equals $31.25 per hour. Going the other way, you multiply the hourly rate by the same hours.
The calculator lets you change hours per week and subtract weeks of unpaid time off. If you take four unpaid weeks, your working year is 48 weeks, so the same annual amount represents a higher hourly rate, and an hourly worker earns less over the year than 52 times the weekly pay.
When the simple formula misleads
Salaried roles often include paid holidays and vacation, which the standard formula treats as paid working time. If you work extra unpaid hours as a salaried employee, your true hourly rate is lower than the formula suggests. For freelancers, remember that an hourly rate must also cover taxes, expenses and unpaid admin time. Use the freelance hourly rate calculator for that.