How this calculator works
Hourly = annual รท 52 weeks รท hours per week. All pre-tax.
That $75k offer โ what's it per hour? Enter the annual salary and your expected weekly hours.
Hourly = annual รท 52 weeks รท hours per week. All pre-tax.
| Annual salary ($) | Hourly |
|---|---|
| 37,500 | $18.03 |
| 56,250 | $27.04 |
| 75,000 | $36.06 |
| 112,500 | $54.09 |
| 150,000 | $72.12 |
Every number above is computed by the same in-browser engine as the calculator โ nothing is hardcoded.
The formula is annual salary divided by 52 divided by weekly hours, and each part of the denominator hides a choice. The 52 assumes no unpaid absence, safe for salaried work but not for hourly roles with unpaid leave, where 48 to 50 effective weeks is common. Weekly hours are the big one: the nominal 40 appears in offer letters, but time-tracking studies of salaried professionals consistently find real weeks of 45 to 50 in many fields, and the entered hours should reflect logged reality, not the contract. Commute belongs in the denominator for lifestyle comparisons even though payroll ignores it, a 40-hour role with a 90-minute daily commute is effectively 47.5 hours, and at $75,000 that drops the rate from $36.06 to about $30.40. On-call time, weekend email and travel days sit in the same gray zone. The discipline: compute two rates, nominal with contract hours and effective with logged hours, and use nominal only for legal classification questions, where the FLSA looks at salary per week, not per hour.
Cross-category comparison requires normalizing three layers. Hours first: convert everything to effective hourly with real logged hours, since an hourly offer at $32 beating a salary implying $36.06 nominal can flip once the salaried role runs 48-hour weeks, at which point the hourly role pays $32 for 40 and overtime at $48 beyond, while the salaried role pays $30 per effective hour with no premium. Tax second: both W-2 forms tax identically, but 1099 contract work at the same rate is worth substantially less because the contractor owes the full 15.3 percent self-employment tax and funds their own benefits; a contract rate needs roughly 1.4 to 2 times the employee hourly to break even. Risk third: hourly non-exempt work carries overtime rights and schedule instability, salaried exempt carries stability with unbounded hours, and contracting carries instability with no employer safety net. Convert both offers to effective hourly, after-tax, and the answer usually becomes obvious rather than debated.
The effective rate converts vague feelings into arguments. In negotiation, a candidate moving from a 40-hour culture to a known 50-hour shop can quantify the ask: the same $90,000 pays $43.27 nominal but $34.62 effective, so matching effective pay requires about $112,500, a number to state out loud when hours are discussed. It also prices flexibility honestly, since a hybrid schedule reclaiming five commute hours per week raises the effective rate by 9 to 12 percent without a dollar of raise, which belongs in total-compensation comparisons alongside match and PTO. For life decisions the same ratio applies: a promotion to $120,000 with expected 55-hour weeks may pay less per effective hour than the current $95,000 at 42, and only the logged-hours version of this calculator reveals it. Re-run the conversion after any change in title, schedule or culture, keep the two numbers, nominal and effective, written down, and make trade-off decisions against the effective one. Salary is an annual figure; life is lived hourly.
Many salaried roles run 45โ50 real hours. Divide by your actual hours, not the nominal 40 โ the rate often drops 10โ25%.
Freelancers need ~2ร an employee's hourly rate to cover self-employment tax, benefits and unpaid time โ use the freelance rate calculator.
Federal law sets a salary floor for the white-collar exemption: from January 1, 2026, the Department of Labor standard threshold rises to $1,128 per week, about $58,656 per year, and workers paid below it must receive overtime at 1.5 times regardless of job title. Passing the salary test is not enough; duties must be genuinely executive, administrative or professional. Some states are stricter, California requires exempt salaries of at least twice the state minimum wage for full-time work, and New York, Washington, Colorado and Alaska run their own higher thresholds. Run your salary through this calculator at 40 hours: if the result implies under $28.70 per hour nominal, and your real hours push effective pay lower, check whether you are correctly classified. Misclassified employees can recover two to three years of back overtime plus an equal amount in liquidated damages under the FLSA.
At a standard 2,080-hour year, $50 per hour is $104,000. The reverse conversions at common benchmarks: $25 per hour equals $52,000, $30 equals $62,400, $40 equals $83,200, and $100 per hour equals $208,000. Two adjustments matter for real comparison. If the role runs 45 actual hours per week, a $104,000 salary pays about $44.68 per effective hour, not $50. And for freelance or contract work, $50 per hour as an employee implies billing roughly $75 to $100 per hour to cover the employer-half of FICA at 7.65 percent, benefits, unpaid time off and admin hours, since self-employed workers carry costs that W-2 salaries hide. Use the nominal conversion for offer comparison, the effective-hours version for lifestyle questions, and the doubled-rate rule for consulting quotes.
Because salaried professional work routinely exceeds 40 hours, and every unpaid hour above 40 divides into the same annual salary. A $75,000 salary is $36.06 per hour at 40 hours, $32.05 at 45, $28.85 at 50, and $26.04 at a 55-hour grind, a 28 percent haircut between the nominal and the 50-hour reality. Add commute time and the rate falls further, which is why remote-role comparisons should include it. Unpaid PTO does not change the math, salaried workers are paid for those weeks, but on-call expectations and after-hours email do, because they are hours worked in every sense except the payroll one. The honest comparison procedure: log real hours for two typical weeks, divide salary by 52 times that weekly figure here, and compare that effective rate across offers. Two roles at equal salaries can differ by 25 percent in effective hourly pay purely through culture, and the calculator only reveals it if you enter the true hours instead of the nominal 40.