Hourly Rate Calculator
Work backward from a target annual income to the hourly rate you need to earn it.
How this calculator works
- Enter your target annual income.
- Enter how many hours per week and weeks per year you'll work.
- The calculator divides your target income by total annual hours to find the required hourly rate.
If you know the annual income you're aiming for — whether negotiating a job offer or setting a contracting rate — this calculator works backward to tell you the hourly rate required, based on how many hours and weeks you'll actually work.
Example
Targeting $70,000/year, working 40 hours/week for 50 weeks/year (2,000 hours): required hourly rate = $70,000 ÷ 2,000 = $35/hour.
Limitations
This is gross income only — it doesn't account for taxes, benefits, or (for contractors) business expenses. Self-employed users should see the Freelance Rate Calculator, which factors those in.
Frequently asked questions
How do I figure out what hourly rate I need?
Divide your target annual income by your total working hours per year (hours per week × weeks per year). This calculator does that instantly.
Why does “weeks per year” matter?
If you take unpaid time off, fewer weeks are actually earning weeks — reducing this number raises the hourly rate needed to hit the same annual target.
Is this the same as the Freelance Rate Calculator?
This is the simple gross-income version. Freelancers and contractors should use the Freelance Rate Calculator instead, since it also factors in business expenses, taxes and non-billable time.
Can I use this to negotiate a job offer?
Yes — if you know the annual salary you want, this shows the equivalent hourly rate to compare against an hourly offer.