Hourly Rate Calculator
Convert annual salary to hourly wage accounting for vacation time.
Annual salary ($)
Hours per week
Weeks per year
Vacation weeks
Hourly rate
$34.09
Monthly salary
$5000.00
Working weeks/yr
44
Why the 2,080-hour shortcut is wrong
Dividing annual salary by 2,080 (52 × 40) ignores vacation. With 4 weeks off, you work 1,920 hours — giving a higher true hourly rate.
- Working hours = (52 − vacation weeks) × hours/week
- Hourly rate = Annual salary ÷ Working hours
- $60K, 40h/week, 4w vacation = $31.25/hr
- Freelance rate should be 1.5–2.5× employee rate
Formula / How it works
Hourly rate = Annual salary ÷ (Working weeks × Hours per week) Working weeks = Total weeks − Vacation weeks