Hourly Rate Calculator
Convert an annual salary into hourly, daily, weekly and monthly rates — or set your freelance rate.
The Hourly Rate Calculator converts an annual income into the figures that actually matter day to day: your hourly rate, daily rate, weekly pay and monthly pay. Tell it how many hours you work per week and how many weeks per year you are paid for, and every breakdown updates instantly.
The inputs make the tool flexible for both employees and freelancers. Salaried employees should use their contracted hours and paid weeks (often 40 and 52). Freelancers and contractors should think differently: only billable hours should count, and the resulting rate must also absorb the hours you cannot bill — proposals, admin, marketing — plus taxes, insurance and downtime. Many independent professionals plan on 20–25 billable hours per week even when they work 40+.
The calculation runs locally in your browser and is intentionally simple: annual income divided by total paid hours. It does not model overtime, bonuses, benefits or tax brackets — for a deeper look at take-home pay, pair it with a salary or tax calculator.
Hourly rate
$28.85
2,080 paid hours/yr
Daily rate
$1153.85
40 h/day
Weekly
$1153.85
Monthly
$5000.00
Annual income ÷ (hours per week × paid weeks). For freelancers, only count billable hours and remember your rate must also cover non-billable work, taxes, insurance and downtime — many independent workers use 20–25 billable hours per week as a realistic figure.
How to use the Hourly Rate Calculator
- Enter your target or current annual income.
- Enter your hours per week (contracted or billable).
- Enter your paid weeks per year (52 for full-time salaried; fewer for freelance).
- Read your hourly, daily, weekly and monthly rates.
- For freelancing, adjust to ~20–25 billable hours to make sure the rate covers your overhead.
Frequently asked questions
How do I convert an annual salary to an hourly rate?
Divide the annual salary by your total paid hours per year (hours per week × paid weeks). $60,000 over 40 hours × 52 weeks = 2,080 hours, giving an hourly rate of about $28.85. Salaried roles also factor in benefits and paid time off, which this simple conversion ignores.
Why is my freelance rate higher than an equivalent salaried hourly rate?
A salary includes benefits (health insurance, retirement matching, paid leave) and assumes you are paid for 100% of your working time. Freelancers pay for those themselves, do unpaid admin, and face gaps between projects. A common rule is to multiply an equivalent salaried rate by 1.5–2.5× when setting freelance rates.
How many billable hours should a freelancer assume per year?
Realistically 1,000–1,500 billable hours per year even when working full weeks — the rest goes to finding work, admin, learning and downtime. If you assume 40 billable hours every week, your rate will be too low to sustain the business. This calculator lets you set weeks and hours explicitly for that reason.
Does the calculator include taxes?
No. The results are gross pre-tax rates. Self-employed income is often subject to extra taxes such as self-employment tax on top of income tax, so subtract your expected effective tax rate when checking whether the rate meets your take-home target.
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