How to Calculate Your Hourly Rate
The formula is simple: Hourly Rate = Annual Salary / (Hours per Week x Weeks per Year). For a $60,000 salary working 40 hours/week for 52 weeks: $60,000 / (40 x 52) = $28.85/hour.
If you have 2 weeks of unpaid vacation, use 50 weeks instead: $60,000 / (40 x 50) = $30.00/hour.
Overtime Rate
In the US, overtime is typically paid at 1.5x your regular hourly rate for hours over 40 per week. If your hourly rate is $28.85, overtime pays $43.27/hour.
Quick Reference
| Annual Salary | Hourly (40 hrs, 52 wks) |
|---|---|
| $30,000 | $14.42 |
| $50,000 | $24.04 |
| $75,000 | $36.06 |
| $100,000 | $48.08 |
| $150,000 | $72.12 |
| $200,000 | $96.15 |