What does this tool do?
An hourly equivalent divides gross salary by paid hours in the year. It is useful for comparing job offers and contract rates.
The Formula
Hourly rate = Annual salary ÷ (Hours per week × Paid weeks)Frequently Asked Questions
Should I use 52 weeks?
Use paid weeks. If you take two weeks of unpaid leave, use 50.
How do contract rates compare?
Contractors usually cover their own tax, insurance and downtime, so a contract hourly rate needs a margin over the employee equivalent.