How it's calculated
Your hourly rate is simply your annual salary divided by the total hours you work in a year:
Hourly = Annual salary ÷ (hours per week × weeks per year)
At a standard 40 hours a week for 52 weeks (2,080 hours), a $60,000 salary works out to about $28.85 an hour. Working more hours for the same salary lowers your real hourly rate — useful to know when weighing a "salaried" job against an hourly one.
Salaried vs hourly — what to watch
- Unpaid overtime quietly cuts your effective hourly pay. A 50-hour week on the same salary is a real pay cut per hour.
- Benefits matter: salaried roles often include paid time off, health insurance and retirement matching that raise total compensation.
- Freelancers: set your rate well above your old hourly wage to cover taxes, gaps between gigs, and your own benefits.
Make your income work harder
Plan
Budget your take-home
Knowing your hourly rate is step one — now plan where it goes.
Open budget tool →Frequently asked questions
Is this before or after tax?
Before tax (gross). To see take-home pay, use the paycheck calculator.
How many work hours are in a year?
Full-time is usually counted as 2,080 hours (40 × 52). Subtract unpaid time off by lowering the "weeks per year" slider.