How MySalaryRate calculates your rate
Updated 6 October 2026
MySalaryRate is a compensation conversion tool, not a tax calculator, salary survey or recommendation engine. It aligns amounts across time periods and currencies. Selecting “salary” or “freelance” does not estimate the economic value of an employment package.
1. Create an annual reference
Let D be working days per year, H hours per day and M equal monthly payments per year. Defaults are D = 220, H = 8 and M = 12. These are editable assumptions, not official employment standards.
- Hourly input: amount × D × H
- Daily input: amount × D
- Monthly input: amount × M
- Annual input: amount, unchanged
For a freelancer, use time you expect to invoice. For an employee, decide whether you want an equivalent per paid hour or per hour actually worked. Different denominators answer different questions.
2. Apply only the increases you choose
The annual reference is multiplied by (1 + increase ÷ 100). Only when converting salary to freelance, the optional extra adjustment is then applied as a second multiplier. A 20% increase followed by 25% extra gives 1.20 × 1.25 = 1.50: a combined 50% increase, not 45%. Both controls start at zero unless a supplied calculator preset specifies otherwise.
3. Convert the currency
The browser requests EUR-based reference rates from ExchangeRate-API through its open-access endpoint. If R₁ is the source currency per EUR and R₂ the target currency per EUR, the calculation is amount ÷ R₁ × R₂. Same-currency calculations need no exchange-rate request to produce a result.
The result shows the provider’s update date when available. A previously fetched rate can be used from a browser cache for up to seven days and is marked as cached. If no usable rate exists for a currency pair, the converter withholds that result. Reference rates are indicative: bank spreads, transfer fees and settlement timing are not included.
4. Express the target period
Divide the converted annual reference by D × H for hourly, D for daily, or M for monthly. Annual output needs no division. Calculations retain precision internally; displayed results are rounded.
A reproducible example
Start with 60,000 EUR annually, add 20%, then add 25% for a salary-to-freelance scenario. The reference becomes 90,000 EUR. At 200 billable days, that is 450 EUR per day. At an illustrative 4.30 PLN per EUR, the day-rate reference is 1,935 PLN. This example uses a fixed hypothetical exchange rate, not a current quote.
Important limitations
- One shared set of work assumptions applies to both input and output. To compare different monthly payment counts, first annualize the source using its count, then use that annual amount with the target count.
- “Net” labels the amount you entered; it never triggers a tax calculation. Switching employment type cannot preserve or predict take-home income.
- Enter freelance amounts excluding VAT or other taxes you collect on behalf of an authority. No VAT is added or removed automatically.
- Paid leave, pension, insurance, employer contributions, expenses and unpaid invoices are not valued.
- A currency conversion is not a cost-of-living comparison. There is no country-specific salary or negotiation recommendation.
About this tool
The intended use is a transparent first-pass comparison when an opportunity requests a different currency, pay period or contracting format. The calculator runs in your browser without an account. The accompanying examples are arithmetic illustrations, not salary-market data or individualized financial advice.
The formulas on this page describe the implementation. When a number looks unexpected, check the input period, annual hours, payment count and currency direction before relying on it.