Finance Tools
Hourly Rate Calculator
Calculate hourly rate from annual salary or convert salary to hourly. Includes overtime, benefits, taxes, and take-home pay calculations.
Use Hourly Rate Calculator to get instant results without uploads or sign-ups. Everything runs securely in your browser for fast, reliable output.
Your results will appear here.
About this tool
Converting salary to hourly rate helps you understand your true earnings, compare job offers, set freelance rates, and negotiate pay. Our calculator handles full-time, part-time, and freelance scenarios with detailed breakdowns.
The calculator accounts for: work hours (40/week standard), paid time off, benefits value, overhead costs (freelancers), taxes and deductions, billable vs total hours. Essential for job comparisons, freelance pricing, and understanding your real earning power.
Usage examples
Full-Time Salary
Convert $60,000 annual to hourly
$60,000 ÷ 2,080 hours = $28.85/hour (40 hrs/week × 52 weeks)
Freelance Rate
Calculate rate with overhead
$60,000 desired + $15,000 overhead + 20% profit = $52/hour billable
After-Tax Hourly
Real take-home per hour
$28.85/hour × 0.75 (after taxes) = $21.64 actual hourly take-home
How to use
- Select calculation type (Salary to Hourly or Freelance Rate)
- Enter annual salary or desired income
- Specify work hours per week
- Add overhead costs (freelancers)
- View hourly rate and detailed breakdown
- Compare gross vs net hourly rate
Benefits
- Salary to hourly conversion
- Freelance rate calculator with overhead
- Before and after-tax hourly rates
- Billable hours vs total hours
- Accounts for vacation and sick time
- Compare job offers accurately
- Set competitive freelance rates
- Understand true earning power
FAQs
How do you convert salary to hourly rate?
Standard formula: Annual Salary ÷ 2,080 hours. 2,080 = 40 hours/week × 52 weeks. Example: $60,000 ÷ 2,080 = $28.85/hour. For part-time: Use actual weekly hours × 52. Account for unpaid time off. Some calculators use 2,087 hours (accounting for paid holidays). Important: This is GROSS hourly (before taxes/deductions).
What is a good hourly rate for freelancers?
General rule: Desired salary × 2.5 to 3. Example: Want $60K → charge $75-90/hour. Why multiply? Covers: self-employment tax (15.3%), health insurance ($400-800/month), retirement (10-15%), overhead (software, equipment), non-billable time (30-40%), no paid vacation/sick days, profit margin. Junior: $50-75/hr. Mid-level: $75-150/hr. Senior: $150-300/hr. Varies by industry and location.
How many hours should I bill as a freelancer?
Realistic billable hours: 20-25 hours/week full-time freelancer. Why not 40? Non-billable activities: marketing (5-10 hrs), admin/invoicing (3-5 hrs), learning/training (2-5 hrs), proposals/estimates (3-5 hrs), breaks/downtime (5 hrs). If charging $100/hr but only billing 20 hrs/week: $100 × 20 × 52 = $104K annual. Calculate rate based on total hours worked, not just billable.
Should my freelance rate include taxes?
YES! Freelancers pay both employee and employer portions: Self-employment tax (15.3%), Federal income tax (10-37% bracket), State income tax (0-13%, varies), Total: 25-50% depending on income/location. If need $50K net, must gross $66K-100K. Calculate rate after-tax: ($50K net ÷ 0.75) ÷ 1,040 billable hours = $64/hr. Always quote gross rate, set aside 25-40% for taxes quarterly.
What overhead costs should freelancers include?
Common overhead (annual): Health insurance ($5K-10K), Home office (rent %, utilities: $2K-5K), Software/subscriptions ($1K-3K), Equipment/depreciation ($1K-2K), Professional development ($1K-2K), Accounting/legal ($1K-2K), Marketing ($1K-5K), Insurance (liability, errors & omissions: $500-2K). Total: $13K-31K. Divide by billable hours to add to rate. $20K overhead ÷ 1,000 hours = $20/hr added to rate.
How do benefits factor into hourly rate?
Employer-provided benefits worth 20-40% of salary: Health insurance ($6K-12K/year value), 401(k) match (3-6% of salary), Paid time off (10-20 days = 4-8% of time), Sick leave (5-10 days), Paid holidays (10 days), Life insurance ($500), Dental/vision ($1K). $60K salary + $15K benefits = $75K total compensation. Hourly: $75K ÷ 2,080 = $36/hr actual value vs $28.85/hr salary alone. Consider when comparing job offers.
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