Hourly to Salary Calculator
Convert hourly pay into annual, monthly, bi-weekly, and weekly salary with overtime and paid time off adjustments.
Hourly to Salary Calculator
Convert hourly pay to annual salary (or vice versa) with taxes, benefits, and schedule.
Hourly to Salary Calculator
Typical: 52 weeks (no vacation) or 50 weeks (2 weeks vacation)
Understanding Hourly vs. Salary Pay
Converting between hourly and salary pay helps you compare job offers, negotiate compensation, and understand your true earning potential. Hourly employees are paid for each hour worked and typically receive overtime (1.5x rate) for hours over 40 per week. Salaried employees receive a fixed annual amount regardless of hours worked, though many salaried positions don't qualify for overtime.
The standard calculation assumes 2,080 hours per year (40 hours/week × 52 weeks). However, actual working hours vary based on vacation time, holidays, and unpaid time off. A more realistic calculation uses 50 weeks (2,000 hours) to account for 2 weeks of vacation, or 49 weeks (1,960 hours) for 3 weeks vacation.
For example, $25/hour at 2,080 hours = $52,000/year gross salary. However, this doesn't include benefits like health insurance, 401(k) matching, paid time off, or bonuses—which can add 20-30% to total compensation. Always compare total compensation packages, not just base salary.
Hourly vs. Salary: Pros and Cons
Hourly Pay
Pros
- • Overtime pay (1.5x for hours over 40/week)
- • Compensated for every hour worked
- • Clear work-life boundaries
- • More flexibility in hours
- • Protected by wage laws
Cons
- • Income varies with hours worked
- • Less job security
- • Fewer benefits typically
- • No pay for sick days/vacation (usually)
- • Income unpredictability
Salary Pay
Pros
- • Predictable income
- • Better benefits package
- • Paid time off/sick days
- • More career advancement
- • Often higher total compensation
Cons
- • No overtime pay (most positions)
- • Expected to work beyond 40 hours
- • Work-life balance challenges
- • Fixed pay regardless of hours
- • Harder to negotiate raises
Comparing Job Offers: Total Compensation
When comparing hourly and salaried positions, consider the full compensation package, not just base pay. Here's what to factor in:
| Benefit | Typical Value | Notes |
|---|---|---|
| Health Insurance | $500-$1,200/mo | Employer covers 50-80% |
| 401(k) Match | 3-6% of salary | Free money, always max |
| Paid Time Off | 2-4 weeks/year | Worth 4-8% of salary |
| Bonuses | 5-20% of salary | Performance-based |
| Stock Options/RSUs | Varies widely | Tech companies especially |
| Professional Development | $1,000-$5,000/yr | Training, conferences |
Example: A $60,000 salary with full benefits (health insurance, 5% 401k match, 3 weeks PTO, 10% bonus) has a total value of $75,000-$80,000. Compare this to $30/hour ($62,400/year) with no benefits—the salaried position is worth $12,600-$17,600 more annually.
Negotiation Tips for Both Pay Structures
1. Research Market Rates First
Use sites like Glassdoor, PayScale, and Levels.fyi to find median pay for your role, experience level, and location. Come to negotiations with data: "The market rate for this position in [city] is $X-$Y based on my research."
2. Know Your Worth (and Prove It)
Calculate your hourly rate including all hours worked, not just 40/week. If you're salaried working 50 hours/week, your effective hourly rate is 20% lower than you think. Use this as leverage: "My effective rate here is only $22/hour, while market is $28/hour."
3. Negotiate Total Package, Not Just Base
If base salary is fixed, negotiate other components: signing bonus, extra PTO, remote work flexibility, earlier performance review, stock options, professional development budget, or flexible hours.
4. For Hourly: Clarify Overtime Policies
Ask about overtime opportunities, holiday pay rates (1.5x or 2x?), and guaranteed minimum hours. Also clarify if you'll be classified as exempt or non-exempt—this affects overtime eligibility.
5. For Salary: Understand Expected Hours
Ask directly: "What are typical working hours for this role?" A $70,000 salary with 40 hours/week ($33.65/hour) is better than $75,000 with 50 hours/week ($28.85/hour). Calculate your true hourly rate.
6. Always Get It In Writing
All compensation (base pay, bonus structure, benefits, PTO, start date, title) should be in your offer letter. If promised verbally but not in writing, it doesn't exist. Don't accept until everything is documented.
Frequently Asked Questions
What's a good hourly rate compared to salary?
To compare: divide annual salary by 2,080 hours (52 weeks × 40 hours). For example, $50,000/year = $24/hour. However, salaried positions often include benefits worth 20-30% more, so a $50,000 salary might be equivalent to $27-$30/hour with no benefits. Also consider that hourly workers can earn overtime (1.5x) while most salaried employees cannot.
Should I choose hourly or salary?
Choose hourly if: you value overtime pay, prefer clear work-life boundaries, need schedule flexibility, or work irregular hours. Choose salary if: you want predictable income, better benefits, paid time off, career advancement opportunities, and don't mind working beyond 40 hours occasionally. Salary positions typically offer higher total compensation at senior levels.
How many hours per year is full-time work?
Standard calculation: 2,080 hours (40 hours/week × 52 weeks). However, this assumes no vacation or holidays. More realistic calculations: 2,000 hours (50 weeks, 2 weeks vacation), 1,960 hours (49 weeks, 3 weeks vacation), or 1,920 hours (48 weeks, 4 weeks vacation). When converting salary to hourly, use the hours you actually work, not the theoretical maximum.
Do salaried employees get overtime?
It depends on your classification. Exempt employees (executives, professionals, administrators earning $684+/week in 2024) don't get overtime. Non-exempt salaried employees must be paid overtime for hours over 40/week. Many employers misclassify workers as exempt to avoid overtime—know your rights. If you're salaried earning under $35,568/year, you likely qualify for overtime regardless of job title.
How do I calculate my effective hourly rate as a salaried employee?
Track your actual hours worked for 2-4 weeks, then calculate: Annual Salary ÷ (Average Weekly Hours × 52). Example: $60,000 salary working 50 hours/week = $60,000 ÷ 2,600 hours = $23.08/hour (not the $28.85 you'd expect at 40 hours/week). This reveals if you're truly being compensated fairly. Many salaried workers are shocked to find their effective hourly rate is lower than comparable hourly positions.
What's the minimum salary to be exempt from overtime?
As of 2024, the federal minimum is $684/week ($35,568/year) for most exempt positions. However, you must also meet specific job duty requirements (executive, administrative, professional, computer, or outside sales). Some states have higher minimums—California requires $66,560/year for most exempt employees. If you earn less than the threshold, you must receive overtime pay regardless of your job title.
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