About

Freelancers and contractors often miscalculate their effective income by multiplying their hourly rate by 2080 (the standard 40-hour work week year). This approach ignores unpaid time off, holidays, and sick days. A $50/hour rate looks like $100k/year, but after 2 weeks of vacation and 10 bank holidays, the reality is significantly lower.

This tool provides a pragmatic breakdown of income. It allows adjustments for actual working days and includes a tax estimator to project "Take Home" pay. It converts abstract hourly numbers into tangible period earnings, helping professionals negotiate contracts with eyes wide open.

Formulas

The adjusted annual salary (S) considering unpaid time off:

S = Rate × Hours/Day × (260 − DaysOff)

Where 260 is the standard number of workdays (5 days × 52 weeks). DaysOff includes holidays and vacation.

Reference Data

Period	Hours (Standard)	Calculation Logic	Notes
Year	2,080	Rate × 52 × Hours/Week	Standard full-time baseline.
Month	173.3	Yearly ÷ 12	Varies by month length (20-23 days).
Bi-Weekly	80	Yearly ÷ 26	Common US pay schedule.
Week	40	Rate × Hours/Week	Base unit.
Day	8	Rate × Hours/Day	Daily rate.

Frequently Asked Questions

A month is not exactly 4 weeks (28 days). The average month is 4.33 weeks (52 weeks / 12 months). This tool uses the precise 4.33 factor for accuracy.

Freelancers should mark up their desired salary by at least 25-30% to account for the self-employment tax, health insurance, and unpaid administrative time (invoicing, finding clients) which are not covered in this pure wage conversion.

2,080 hours (40 hours/week × 52 weeks). However, the average actual working year is often closer to 1,920 hours after accounting for 2 weeks of vacation and ~10 public holidays.