Why are 'naive' and 'effective' hourly different?

Naive divides salary by all paid hours including PTO. Effective treats PTO as time you didn't work, so the per-hour-worked figure is higher.

Does this account for federal or state taxes?

No. This shows gross compensation. For an after-tax estimate, use the Take-Home Pay calculator. We deliberately separate the two.

Should I include unpaid lunch breaks in hours per week?

No. Use scheduled paid hours per week. If you are paid for 40 hours regardless of an unpaid lunch, enter 40.

Calculator · INTERACTIVE

Salary to hourly calculator

Convert annual salary to an hourly rate, with optional adjustment for paid time off.

100% client-side. We never send your inputs to a server.

Annual salary

Hours per week

Weeks worked per year

Default: 52. Adjust if you take unpaid sabbatical or work seasonally.

Paid time off (days/year)

Effective hourly accounts for PTO as worked-equivalent.

Naive hourly

$36.06

Effective hourly (with PTO)

$38.27

Monthly gross

$6,250

Weekly gross

$1,442

Daily gross

$288

Share this calculation

Methodology

How it works

Naive hourly divides annual salary by hours-per-week times weeks-per-year. It treats every paid hour the same, including PTO.

Effective hourly subtracts paid time off from the denominator, so you see what you actually earn per hour worked. This is closer to the comparison freelancers and contractors should make against their billable rate.

All calculation runs in your browser. No values are sent to our servers.

FAQ

Frequently asked questions

Why are 'naive' and 'effective' hourly different?: Naive divides salary by all paid hours including PTO. Effective treats PTO as time you didn't work, so the per-hour-worked figure is higher.
Does this account for federal or state taxes?: No. This shows gross compensation. For an after-tax estimate, use the Take-Home Pay calculator. We deliberately separate the two.
Should I include unpaid lunch breaks in hours per week?: No. Use scheduled paid hours per week. If you are paid for 40 hours regardless of an unpaid lunch, enter 40.

Disclaimer

This calculator is for general educational purposes only. It is not financial, tax, or career advice. Estimates use simplified models that may not reflect every situation. Consult a licensed professional before making compensation, tax, or career decisions.