Base conversion
Rough W-2 conversion: annual salary ÷ 2,080 ≈ hourly equivalent; hourly × 2,080 ≈ annual. Use Hourly rate and then push results through Net salary.
Effective hourly after real life
Commute-adjusted sketch
$35/hour × 40 hours = $1,400 weekly gross. Add 5 hours commuting unpaid and the effective rate on 45 hours of life is lower before taxes. If a salary role pays $68,000 with similar commute and better benefits, compare net monthly + health costs, not vibes.
Benefits that change the conversion
- Employer health premium share
- Retirement match
- PTO value
- Equipment stipends
Freelance multiplier
Self-employed hourly rates must cover non-billable time, SE tax sketches, insurance, and tools. A common mistake is equating W-2 hourly to freelance hourly one-to-one.
Side income tax context: Side-hustle tax basics.
Disclaimer: Educational only.