Why use 2,080 hours?
It is 40 hours × 52 weeks, the US standard for converting salary to an hourly rate. Paid time off is included, which is why it is used even for staff taking three weeks of leave.
Convert your annual salary to hourly rate or hourly wage to annual salary. Accounts for work hours per week and weeks per year.
Hourly = annual salary ÷ (hours per week × weeks worked). Standard full time = 2,080 hours. Annual from hourly = hourly × hours per week × 52.
A $75,000 salary over 2,080 hours is about $36.06 an hour. If you actually work 45 hours a week (2,340 hours), the real rate drops to $32.05.
It is 40 hours × 52 weeks, the US standard for converting salary to an hourly rate. Paid time off is included, which is why it is used even for staff taking three weeks of leave.
Add 25–30% to the salaried hourly rate to cover benefits, payroll taxes and unpaid time off before calling a contract rate equivalent.
Substantially. Every five extra unpaid hours a week cuts an effective hourly rate by roughly 11% — worth calculating before accepting a title-only promotion.