Turning a salary into an hourly wage
A yearly salary is hard to compare against freelance rates, part-time offers or a job in another country. Breaking it down into hourly, weekly and monthly pay puts everything on the same footing. Your hourly rate is the annual salary divided by the hours you actually work in a year, which is your weekly hours times the weeks you work. Monthly pay is simply the year split into twelve.
This matters most when you are weighing options that are quoted differently. A salaried role and a contract rate can look miles apart until you convert them to the same unit, at which point the "higher" one is sometimes the lower one once hours are accounted for.
Two examples
A 52,000 salary at 40 hours a week for 52 weeks works out to 25 an hour, 1,000 a week and about 4,333 a month. Clean, round numbers that make comparisons easy.
Now picture a contract offering 30 an hour. It sounds better than the 25 above, but at 40 hours across 48 paid weeks (no paid leave) it is about 57,600 a year. Closer than it first looked, and once you factor in unpaid time off the gap narrows further.
Using it well
- When comparing jobs, convert both to the same unit before judging which pays more.
- For freelance pricing, work back from the annual income you need to the hourly rate that reaches it.
- Adjust the weeks worked if you take substantial unpaid time off, since that changes the real hourly figure.
One thing to remember
These are gross figures, before tax and deductions. What actually lands in your account depends on your country's income tax, pension contributions and other withholdings, which vary enormously. Treat these numbers as a fair before-tax comparison, not your take-home pay.
Frequently asked questions
How do I price freelance work with this?
Work back from the annual income you need to the hourly rate that reaches it, then add a margin for unpaid admin time and gaps between clients.
Does it handle overtime or bonuses?
No. It converts a straight salary. Add overtime or bonuses separately, since they are usually paid on top of base pay.
Is this before or after tax?
Before tax (gross). Take-home pay depends on your local tax and deductions, which are not included here.
How do I count part-time hours?
Enter your actual hours per week. The hourly rate stays the same; weekly and monthly totals scale with hours.
What weeks per year should I use?
52 for a full year. Use fewer if you take substantial unpaid time off.