How to Calculate Your Hourly Rate
Your hourly rate depends on your annual salary, the number of hours you work per week, and how many weeks per year you actually work (excluding vacation). The basic formula is:
Hourly Rate = Annual Salary ÷ (Working Weeks × Hours Per Week)
For example, if you earn $75,000 per year, work 40 hours per week, and take 2 weeks of vacation, your hourly rate would be $75,000 ÷ (50 × 40) = $37.50/hour.