Hourly Rate Calculator
Calculate your effective hourly rate from your annual salary, accounting for vacation days, holidays, and sick days.
Effective Hourly Rate
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Standard Hourly Rate
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Total Working Days/Year
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Actual Work Days
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Total Paid Days Off
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Total Work Hours/Year
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Daily Rate
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How to Use the Hourly Rate Calculator
- Enter your annual salary: Type your total annual compensation.
- Set hours per week: Adjust if you work more or less than 40 hours.
- Enter paid time off: Add vacation days, holidays, and sick days.
- View results: See both standard and effective hourly rates.
Hourly Rate Formulas
- Standard Rate: Annual Salary / (52 weeks x Hours/Week)
- Effective Rate: Annual Salary / (Actual Work Days x Daily Hours)
- Actual Work Days: 260 - Vacation - Holidays - Sick Days
Average Paid Time Off by Experience
| Years of Experience | Avg Vacation Days | Avg Total PTO |
|---|---|---|
| 0 - 1 years | 7 - 10 | 15 - 20 |
| 1 - 5 years | 10 - 15 | 20 - 25 |
| 5 - 10 years | 15 - 20 | 25 - 30 |
| 10+ years | 20 - 25 | 30 - 35 |
Frequently Asked Questions
What is the difference between standard and effective hourly rate?
The standard hourly rate divides your salary by all 2,080 annual work hours (52 weeks x 40 hours). The effective rate accounts for paid time off, showing what you earn per hour you actually work. The effective rate is always higher since you're paid the same salary for fewer working hours.
Why does the effective rate matter?
The effective rate helps you compare salaried positions with contract or freelance work more accurately. A job offering $100,000 with 25 days PTO has a higher effective rate than one offering $105,000 with 10 days PTO, even though the latter has a higher salary.
How many working days are in a year?
There are approximately 260 weekdays (Monday through Friday) in a year (52 weeks x 5 days). After subtracting public holidays and PTO, the actual number of working days is typically 220-235 depending on your benefits package.