The conversion
Hourly = annual salary ÷ (hours per week × weeks per year). A 65,000 salary at 40 hours and 52 weeks is 31.25/hour — the number to quote when comparing against contract work.
The trap when comparing to contracting
A salaried 65,000 includes paid leave, employer FICA, health contributions and often a retirement match. A contractor at the same hourly rate pays all of that themselves plus self-employment tax, and only bills 70–80% of their working hours. Multiply by roughly 1.3–1.4 to get a comparable contract rate.
Working hours are not billable hours
- Salaried: 2,080 hours is the standard full-time year
- Contractors: 1,400–1,600 billable hours is realistic after admin and sales
- Part-time salaried roles often carry full-time expectations — check the contract
- Overtime-exempt salaried staff effectively earn less per hour in busy seasons
Use the right tool next
For contract pricing use the freelance rate calculator, which starts from the income you need rather than an existing salary.
Frequently Asked Questions
How many hours is a full-time year?
2,080 (40 × 52). Many payroll systems use that as the divisor.
Why is my hourly higher than I expected?
Because salary ÷ 2,080 excludes unpaid overtime — if you work 50-hour weeks, divide by 2,600 instead.
Is this gross or net?
Gross. Use the paycheck calculator for take-home pay.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
Privacy & Your Data
BizCalcTool runs entirely in your browser. The figures you enter are never uploaded, stored or shared — there is no backend to send them to.