How to Calculate Hourly Wage Based on Salary
When looking at the pay rate of jobs, you need to compare apples to apples. If one company gives you an offer based on a yearly salary and another gives you an offer based on an hourly wage, you need to convert one figure or the other to get an accurate comparison. Calculating an hourly wage based on your salary is a straightforward process, but you need to account for the paid holidays that you employer offers.
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Instructions
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1
Multiply the number of hours per week that you work by the number of weeks that you work. For example, if you work 40-hour work weeks and have two weeks of paid vacation time, multiply 40 by 50 to get 2,000 hours per year.
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2
Subtract hours for paid federal holidays. Many companies offer at least 10 paid holidays to their workers. Using the example from above, you would subtract 80 hours (eight hours times 10 days) from the 2,000-hour figure, to get 1,920 hours.
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Divide your salary by the figure you calculated in step two. For example, if your salary was $30,000 per year, your hourly rate would be 15.625 dollars.
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Round up or down to the nearest cent. In the above example, the salary rounds up to $15.63 per hour.
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Tips & Warnings
The above calculation represents the actual hours that you work. If you want to factor in your paid time off, including vacations and holidays, divide your salary by 2,080 (52 weeks at 40 hours per week) to get the hourly rate.
