Salary & hourly rate converter
Job offers arrive in different units — one quotes an hourly rate, the next an annual package — and they are not comparable until you convert them. This does it in both directions using the hours you actually work.
How to use the salary & hourly rate converter
- Choose whether you know your hourly, monthly or annual figure.
- Enter the amount, then your weekly hours and paid weeks per year.
- Add an approximate deduction percentage to estimate take-home pay.
How it works
Annual pay is the hourly rate multiplied by weekly hours and paid weeks. The paid-weeks field matters more than people expect: a contractor with no paid leave working 48 weeks needs a materially higher hourly rate to match a salaried employee on 52.
Deductions are applied here as a single flat percentage. Real income tax is usually banded, meaning the first slice of income is taxed lower than the last, so treat the take-home figures as an approximation and check your local tax tables before budgeting around them.
Common questions
How do I compare a contract rate with a salary?
Reduce the contractor's paid weeks to reflect unpaid leave and holidays, then add the value of benefits — pension, insurance, bonus — to the salaried side before comparing.
How many working hours are in a year?
At 40 hours a week over 52 weeks, 2,080. Subtract your unpaid leave to get a more accurate effective rate.