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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Frequently Asked Questions
How do I calculate my real hourly rate if I work more than 40 hours a week?
Divide your annual salary by your actual hours worked per year instead of the standard 2,080. For example, if you earn $60,000 but regularly work 50 hours weekly, your effective rate is $60,000 ÷ 2,600 hours = $23.08/hour—20% less than the standard calculation shows. This gives you an honest picture of what you're actually earning per hour.
Should I compare job offers based on salary alone?
No—you should calculate total compensation by adding base salary, bonus, benefits value, equity, and PTO. A $70,000 offer with full health insurance, 15 days PTO, and no bonus often outweighs an $80,000 offer with minimal benefits and only 5 days PTO, especially when considering that employer-paid benefits are worth $7,000–$15,000 annually.
How much is my paid time off actually worth in dollars?
Multiply your hourly rate by the number of paid days off you receive. At $28.85/hour (the equivalent of a $60,000 salary), 20 paid days off (10 PTO + 10 federal holidays) equals $1,923 in value. If one job offer includes unpaid time off instead, you need to account for that lost income when comparing total compensation.
How does overtime change my effective hourly rate?
For non-exempt hourly employees, overtime at 1.5x pay significantly increases total compensation. A $25/hour job that requires 50-hour weeks generates $28,000 in annual overtime pay alone, bringing your total from $52,000 to $80,000 yearly. Use the calculator to see how overtime hours impact your actual earnings compared to a straight 40-hour week.
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