Convert an hourly wage to a yearly salary or break an annual figure down to what an hour of your time earns — using your actual hours per week and vacation weeks.
The default 40-hour, 52-week year hides real differences: unpaid overtime lowers your true hourly rate, generous vacation raises it. Knowing your hourly value also prices your time for build-vs-buy decisions.
The conversion is only as good as the weeks figure. A salaried role with 25 days of leave plus public holidays is paid for 52 weeks and worked for roughly 45; a contract or hourly role is paid only for the weeks actually worked. Comparing the two at 52 weeks each overstates the contract by more than a tenth before any other difference is counted.
For a build-or-buy decision the useful number is the after-tax rate, not the gross one. At a 30% marginal rate a gross €40 an hour is €28 in hand, which is the honest threshold for whether a three-hour job is worth paying somebody €100 to take off you.
Contract and salaried roles also differ in what sits behind the rate. Employer pension contributions, paid sick leave, notice periods and equipment are all real compensation that never appears in a day rate, which is why a like-for-like contract figure normally has to be meaningfully higher to match.
Frequently asked questions
How do I convert an hourly wage to an annual salary?
Hourly rate × hours per week × weeks actually worked. At 40 hours and 48 working weeks, €25/hour is €48,000 a year.
How many working hours are in a year?
About 2,080 at 40 hours across 52 weeks — but subtracting five or six weeks of vacation and holidays leaves roughly 1,840–1,880 realistically worked hours.
Why does my true hourly rate matter?
Unpaid overtime silently dilutes it, and comparing job offers per hour exposes differences that annual figures hide. It also prices your time for outsourcing decisions.