Question 1

How do you convert an annual salary to an hourly rate?

Accepted Answer

Divide the annual salary by (Hours per week × Working weeks per year). The defaults assume a full 52-week year at your locale's full-time hours — so a $104,000 US salary at 40h/week × 52 weeks = $50/hour. Dial either input down to model part-time hours or statutory leave and every period re-derives instantly.

Question 2

Nominal vs productive hourly — which does this show?

Accepted Answer

Both, depending on what you set 'Working weeks per year' to. At 52 weeks (the default), you see the nominal rate — $50/hour for a $104K US salary, matching the industry-standard 2,080-hour year. Drop it to your actual paid-leave-adjusted figure (46.4 for UK statutory, ~50 for US with 2 weeks PTO) and hourly climbs because you're dividing the same salary across fewer productive hours. Weekly and monthly stay on calendar pace either way.

Question 3

What's a realistic EU paid-leave figure?

Accepted Answer

The EU Working Time Directive guarantees at least 4 weeks paid leave across member states. Most countries legislate 5–6 weeks plus 8–14 public holidays — France, Germany, Spain, Italy all sit around 6 weeks total off. Set Working weeks per year to about 46 to model a typical continental-European leave entitlement.

Question 4

What about 13th-month or 14th-month pay?

Accepted Answer

Italy, Spain, Greece, Portugal, Austria and parts of Germany pay a contractual 13th-month salary (and sometimes a 14th-month holiday bonus) on top of the monthly figure. If your contract guarantees these, include them in the annual total you enter here. Otherwise this tool treats the annual figure as 12 equal monthly payments.

Question 5

Is this pre-tax or take-home pay?

Accepted Answer

Pre-tax (gross). This tool converts between pay periods — it doesn't deduct income tax, National Insurance, FICA, or pension contributions. If you want a take-home figure with a simple combined tax rate, try our Freelance Rate tool which lets you enter a blended percentage.

Question 6

What if I work part-time or non-standard hours?

Accepted Answer

Use the Hours per week control. The default is the locale's full-time standard (40 for the US and Canada, 37.5 for the UK, 38 for Australia, 37 for the EU). Drop it to 20 and the annual figure halves while the hourly rate stays the same. Push it higher for overtime-heavy roles and the annual scales up proportionally.

Question 7

Should bonuses, overtime or 13th-month pay be included?

Accepted Answer

Include anything contractually guaranteed — a fixed 13th-month payment or a guaranteed bonus belongs in the annual figure. Leave out discretionary bonuses and variable commission, which aren't reliable enough to plan around. When in doubt, compare two scenarios: base-only and base-plus-guaranteed-extras.

Question 8

Is this tool free to use?

Accepted Answer

Yes — completely free, no sign-up, no account. TimeIsMoney.tools is supported by minimal, non-intrusive advertising. Nothing you enter leaves your browser.

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