Salary Calculator: Hourly to Annual, Annual to Hourly, and Everything In Between

Salary comparisons are more complicated than dividing annual pay by 2,080 (52 weeks × 40 hours). Here's what most people miss.

The Standard Conversion

Annual salary ÷ 2,080 = hourly rate for a standard 40-hour week.

$60,000 ÷ 2,080 = $28.85/hour.

Hourly rate × 2,080 = equivalent annual salary.

$25/hour × 2,080 = $52,000/year.

What the Standard Conversion Misses

Actual hours worked: If you regularly work 50 hours/week as a salaried employee, your effective hourly rate is $60,000 ÷ 2,600 = $23.08/hour — 20% less than it appears.

Benefits value: A salaried position with employer-paid health insurance is worth $7,000-15,000 more than the comparable hourly rate with no benefits. Comparing job offers requires adding the monetary value of benefits.

Overtime: Non-exempt hourly employees earn 1.5x after 40 hours. At $25/hour, 50-hour weeks yield $28,000 in overtime annually, bringing total compensation to $80,000.

PTO and holidays: 10 days PTO plus 10 federal holidays = 20 paid days off = $1,923 in value at $28.85/hour. An offer with unpaid time off is worth less in total compensation.

Comparing Job Offers Honestly

Total compensation = base salary + bonus + benefits value + equity value + PTO value.

A $70,000 offer with full benefits, 15 days PTO, and no bonus often beats an $80,000 offer with bare benefits, 5 days PTO, and high workload expectations.

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