Annual to Hourly Salary
The formula
Hourly rate = annual salary ÷ (hours per week × 52)
The calculator spreads the salary over 52 weeks, matching how salaried employees are paid (holidays included).
Worked examples
- €40,000 a year at 40 hours a week: 40,000 ÷ 2,080 = €19.23 an hour.
- €36,000 a year at 35 hours a week: 36,000 ÷ 1,820 = €19.78 an hour.
The same salary is worth more per hour when the working week is shorter — useful when comparing job offers with different working hours.
Comparing two offers
| Offer | Annual | Hours/week | Hourly equivalent |
|---|---|---|---|
| A | €42,000 | 40 | €20.19 |
| B | €39,000 | 35 | €21.43 |
Offer B pays less per year but more per hour worked. Bonuses, benefits, commuting time and paid leave should also be part of the comparison.
Setting a freelance rate
An employee's hourly equivalent is not a good freelance rate. A self-employed person must cover:
- Their own social contributions and taxes, often paid entirely by the freelancer.
- Unbilled time: prospecting, admin, training, holidays and sick days. Many freelancers bill only 60–75% of their working time.
- Business expenses: equipment, software, insurance, accounting.
A common rule of thumb is to charge 1.5 to 2 times the hourly equivalent of the salary you are aiming for. To earn the equivalent of a €40,000 salary, a freelancer would typically need to bill at least €30–40 an hour.
The opposite conversion is available with the hourly to annual salary calculator.
Frequently Asked Questions
How do I convert a monthly salary to an hourly rate?
Multiply by 12 to get the annual figure, then use this calculator. For a 35-hour week, you can also divide the monthly salary by 151.67 hours.
Does the calculation account for holidays?
Yes, implicitly: salaried employees are paid for 52 weeks, including paid leave, so dividing by 52 weeks gives the true hourly equivalent.
Why should a freelancer charge more than this hourly rate?
Freelancers pay their own contributions, aren't paid for holidays or admin time and cover their own expenses. Charging 1.5 to 2 times the salaried equivalent is common.