# Hourly rate to invoice calculator

> Hours times rate, plus expenses, minus discount, plus tax. Below, see what any hourly rate comes to per year.

Canonical: https://www.invoqk.com/hourly-rate-to-invoice-calculator

The discount applies to time and expenses before tax.

## Hourly rate, hourly to salary and how to set your rate

An hourly rate is what you charge or earn for one hour of work. For an invoice, multiply the hours worked by the rate, add expenses, take off any discount and add tax. That is what the calculator above does. The same rate also tells you what you earn over a year, which is what most people mean when they search for hourly to salary.

The table and notes below convert common hourly rates, such as 15, 20, 25, 40 or 50 an hour, into weekly, monthly and annual pay.

### Hourly to salary formula

Annual salary = hourly rate × hours per week × 52. At 40 hours a week that is hourly rate × 2,080. So $20 an hour is $41,600 a year, and $40 an hour is $83,200. For part-time pay, use your real hours: 25 hours a week at $20 is 20 × 25 × 52 = $26,000.

### Salary to hourly rate

Hourly rate = annual salary ÷ 2,080 for a full-time year. A $60,000 salary is about $28.85 an hour. Divide by the hours you actually work if you work more or less than 40 a week.

### Hourly wage vs salary

An hourly wage pays for each hour worked, so overtime and unpaid hours show up directly. A salary pays a fixed amount per year regardless of the exact hours. Salary is steadier, hourly pay rewards extra hours.

### How to determine your freelance hourly rate

Start from the income you want, add your business costs, taxes and unpaid time off, then divide by the hours you can really bill. Many freelancers bill only 20 to 30 hours of a 40-hour week, so their hourly rate has to be higher than an employee's equivalent wage.

### Gross and take-home pay

The figures here are gross, before income tax and other deductions. Your annual income after tax will be lower, and a freelancer also pays for their own benefits, equipment and self-employment taxes.

### Hourly to salary chart (40 hours a week, 52 weeks)

- Hourly rate
- Weekly
- Monthly
- Annual salary

- $15
- 600
- 2,600
- 31,200

- $17
- 680
- 2,947
- 35,360

- $20
- 800
- 3,467
- 41,600

- $21
- 840
- 3,640
- 43,680

- $24
- 960
- 4,160
- 49,920

- $25
- 1,000
- 4,333
- 52,000

- $30
- 1,200
- 5,200
- 62,400

- $32
- 1,280
- 5,547
- 66,560

- $40
- 1,600
- 6,933
- 83,200

- $45
- 1,800
- 7,800
- 93,600

- $50
- 2,000
- 8,667
- 104,000

- $80
- 3,200
- 13,867
- 166,400

## Common questions

### How do I turn hours into an invoice amount?

Multiply the hours by your hourly rate, add any expenses, subtract discounts, then add tax. This calculator does those steps in order.

### How do I calculate hourly rate to annual salary?

Multiply the hourly rate by 2,080, which is 40 hours a week for 52 weeks. For example, $20 an hour is $41,600 a year and $25 an hour is $52,000. Use your own weekly hours for part-time work.

### How do I work out the hourly rate for a $60k salary?

Divide $60,000 by 2,080 hours. That gives about $28.85 an hour. If your year has fewer paid hours, divide by those instead.

### What is an hourly rate?

The amount paid for one hour of work. Employees receive it as a wage, and freelancers charge it to clients, usually adding costs and overhead on top of the wage they want.

### What is the difference between salary and hourly wage?

An hourly wage is paid per hour worked, a salary is a fixed yearly amount. Hourly workers are usually paid for overtime, while salaried roles may not be, depending on the country and contract.

### Should I invoice by the hour or by project?

Hourly billing suits open-ended work. Project pricing rewards speed. Either way, an hourly calculation helps you check that the total is fair.

### What is the minimum wage in Texas?

Texas follows the federal minimum wage of $7.25 an hour, though some jobs and cities have other rules. Check the current figure with the Texas Workforce Commission.

### Is tax charged on expenses?

Often yes, but it depends on the expense and your country. This calculator applies one tax rate to the discounted total.

## Related

- [Free invoice calculators](https://www.invoqk.com/calculators)
- [Invoqk home](https://www.invoqk.com)