Hourly Wage Calculator

Hourly Wage Formula

Using the standard 40-hour workweek and 52 weeks per year, the denominator is 2,080 hours. So the simplified formula is: Hourly Rate = Annual Salary ÷ 2,080. The calculator also shows your weekly (÷ 52) and monthly (÷ 12) equivalents.

Example

How to Interpret Your Result

Your hourly wage tells you what each hour of your work is worth on paper. But that number alone doesn't tell the full story:

• Gross vs. net: This calculator shows your gross hourly rate (before taxes and deductions). Your actual take-home pay per hour will be lower.
• Unpaid time: If you commute 30 minutes each way, your real hourly wage is lower. Use the Real Hourly Wage Calculator to account for commute and expenses.
• Comparing offers: A $30/hour job at 35 hours/week ($54,600/year) pays less than a $28/hour job at 40 hours/week ($58,240/year). Always compare annual totals, not just hourly rates.

Assumptions

This calculator uses 40 hours per week and 52 weeks per year by default (2,080 total hours). You can adjust both values. The calculation assumes you are paid for every hour in those weeks — it does not account for unpaid leave, holidays, or overtime. If you work part-time or have irregular hours, enter your actual average hours and weeks for an accurate rate.

Common Mistakes

• Forgetting unpaid time: Commuting, lunch breaks, and off-the-clock prep time are not paid but still cost you time.
• Using 2,000 instead of 2,080: Some people round to 2,000 hours (50 weeks × 40 hours). That assumes 2 weeks of unpaid vacation. Use 2,080 unless you know you have unpaid time off.
• Confusing gross with net: A $30/hour gross rate might be $22/hour after taxes, insurance, and retirement contributions.

Frequently Asked Questions

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