Salary to Hourly Calculator
Answers the Question
What is an employee's equivalent hourly rate?
Calculator for Salary to Hourly
What Is the Salary to Hourly?
It is often useful to convert salaries into hourly wages. This formula allows users to do that.
Why Is it Important?
- Employees may consider contracting, but it's not always clear how to compare a salaried offer with an hourly one. This formula allows an apples to apples comparison.
- Employers may consider hiring hourly employees for short-term work, or positions that only require a small number of hours worth of work.
Formula(s) to Calculate Salary to Hourly
- HOURLY RATE = (SALARY + BENEFITS) / (HOURS WORKED PER WEEK * 52 WEEKS PER YEAR)
Common Mistakes
- Not including benefits
- Not considering that less stability generally results in higher hourly rates
- Not considering the risks or instability associated with contracting
- Not considering possibilities for promotion
- Not considering that many salaried positions can require essentially unlimited overtime without additional pay
- Not considering unbillable hours for hourly employees such as seeking new opportunities
- Not considering fixed expenses for hourly employees such as commuting costs