Hourly Rate Calculator
Convert salary or project income into an hourly rate.
Converting a salary to an hourly rate — or an hourly rate to an annual salary — is essential for comparing job offers, setting freelance rates, and understanding your true earnings. This calculator handles the conversion both ways, accounting for work hours per week and weeks per year.
Your result will appear here...
How to Calculate Your Hourly Rate
- Enter your desired annual income — the total yearly earnings you want to achieve.
- Enter hours worked per week — the typical number of billable hours per week.
- Enter weeks worked per year — subtract holidays and vacation (most people work 48–50 weeks).
- Click Calculate — the tool divides annual income by total working hours to give your required hourly rate.
Frequently Asked Questions
How do I convert salary to an hourly rate? ▼
Divide your annual salary by the total hours worked in a year. For a standard full-time job: Annual Salary ÷ 2,080 (40 hours × 52 weeks). A $60,000 salary equals approximately $28.85/hour.
What hourly rate should a freelancer charge? ▼
Freelancers should charge 2–3× what an equivalent employee earns hourly, because freelancers cover their own taxes (15–30%), health insurance, equipment, software, unpaid time (admin, marketing), and have no paid leave. A $30/hour employee equivalent should charge $60–90/hour.
Should I factor in overhead costs? ▼
Yes. Overhead includes software subscriptions, equipment, office space, insurance, professional development, and accounting fees. Add these annual costs to your desired income before dividing by billable hours for an accurate minimum rate.
What is the difference between billable and non-billable hours? ▼
Billable hours are time spent directly on client work that you can charge for. Non-billable hours include admin, invoicing, marketing, sales calls, and learning. Most freelancers are billable only 60–75% of their working hours — factor this into your rate.
How do I increase my effective hourly rate? ▼
Three strategies: raise your prices (easiest), reduce non-billable time (automation, templates), or switch to value-based pricing where you charge for outcomes rather than hours. Productised services and retainer agreements also improve effective rates.
Is my income data stored? ▼
No. All calculations happen in your browser. No salary or rate data is ever transmitted or stored.