The conversion formula
hourly = annual salary ÷ (hours per week × 52)
annual = hourly rate × hours per week × 52
The common shortcut — divide salary by 2,080, or halve the salary in thousands ("$60k ≈ $30/hour") — assumes exactly 40 hours a week. The shortcut breaks down fast if your real week is longer, which is exactly when this conversion is most worth doing.
Comparing a salary offer against contract work
Contractors and freelancers should not compare rates head-to-head with employees. A W-2 salary includes employer-paid payroll tax, and usually health insurance, PTO, and retirement match. A rough rule: a contract rate needs to be 25–40% higher than the salary-equivalent hourly rate to break even on benefits and self-employment tax.
A worked example
An offer of $72,000 sounds like $34.62/hour. But if the role reliably demands 50-hour weeks, the true rate is $72,000 ÷ 2,600 = $27.69. An hourly job paying $30 with real overtime protection would out-earn it — $30 × 40 + $45 × 10 = $1,650/week versus $1,384/week.