How to calculate an hourly rate in Excel and Google Sheets

Excel & Google Sheets

=A2/(B2*C2)

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Verified example

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=A2/(B2*C2)→25

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1Set up three columns: Annual Salary (A), Hours per Week (B), and Weeks per Year (C, typically 52).
2In the Hourly Rate column, enter =A2/(B2*C2). This divides the annual salary by the total annual hours worked.
3Format the result as Currency. For example, a $52,000 salary at 40 hours/week × 52 weeks = $25.00/hour.

To go the other direction — annual salary from hourly rate — multiply: =A2*B2*C2 where A2 is the hourly rate.

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For a true effective rate, subtract paid time off from weeks worked (e.g., use 50 weeks if 2 weeks are vacation), giving a higher hourly rate.

Add overtime hours separately and multiply by 1.5x the base rate, then divide the total annual pay by total hours (regular + overtime).

Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.

Last reviewed: May 28, 2026