How the conversion works
Two interpretations matter and they give different numbers:
- Gross equivalent — divides by 52 weeks regardless of PTO. This is what most salary surveys mean by "$X/hr equivalent" — it answers "what's the per-hour value of my paid week?"
- Per actual hour worked — divides by (52 − PTO) weeks. This answers "what does each hour I actually clock in earn me?" — relevant when comparing salary jobs against contract or freelance work.
Worked example
$60,000 salary, 40 hours/week, 4 weeks PTO.
- Gross equivalent = $60,000 ÷ (40 × 52) = $60,000 ÷ 2,080 = $28.85/hr
- Per actual hour worked = $60,000 ÷ (40 × 48) = $60,000 ÷ 1,920 = $31.25/hr
Both are correct — they just answer different questions.
FAQ
Why are weekly and bi-weekly different?
Weekly assumes 52 pay periods, bi-weekly assumes 26. Some employers split annual salary into 24 semi-monthly cheques instead — adjust the bi-weekly number by 26/24 if that's your situation.
Does this account for taxes?
No — all figures are gross (pre-tax). For after-tax take-home, multiply by (1 − your effective tax rate). The freelance rate calculator handles tax explicitly when you want to compare salary against self-employment income.
What about overtime?
This calculator assumes a fixed weekly hour count. For roles with variable hours or overtime premiums, average your typical week and multiply overtime hours by the relevant premium (1.5× or 2×) before entering.