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Why Comparing Hourly and Salary Offers is Tricky
One job pays $32 per hour. Another offers $65,000 per year. Which pays more? You cannot compare them directly without converting to the same basis. Hourly pay depends on hours worked; salary is fixed regardless of hours. This guide shows you how to convert both to yearly (or hourly) so you can compare fairly and make the best choice.
Rule of Thumb
A $65,000 salary is roughly equivalent to $31.25/hour at 40 hours/week for 52 weeks. But if the salaried job expects 45+ hours, your effective hourly rate drops. Always factor in expected hours.
Converting Hourly to Yearly
Use the formula: Hourly Rate × Hours/Week × Paid Weeks/Year. For a standard full-time role: $32/hr × 40 × 50 = $64,000/year. Use 50 weeks if you take 2 weeks unpaid; use 52 if you get paid holidays.
Example: $32 × 40 × 50 = $64,000/year
Converting Salary to Hourly
Divide annual salary by the number of hours you will actually work. The standard divisor is 2,080 (40 × 52), but that assumes no overtime. If the salaried job expects 45 hours/week, use 2,340 (45 × 52).
$65,000 ÷ 2,080 = $31.25/hr. But $65,000 ÷ 2,340 = $27.78/hr. The "better" offer may pay less per hour when you account for extra work.
| Salary | 40 hrs/wk (2,080 hrs) | 45 hrs/wk (2,340 hrs) | 50 hrs/wk (2,600 hrs) |
|---|---|---|---|
| $55,000 | $26.44/hr | $23.50/hr | $21.15/hr |
| $65,000 | $31.25/hr | $27.78/hr | $25.00/hr |
| $75,000 | $36.06/hr | $32.05/hr | $28.85/hr |
What Else to Factor In
Base pay is only part of the picture. Salaried roles often include health insurance, retirement matching, paid time off, and bonuses. These can add 20–30% to total compensation. An hourly job at $30/hr with no benefits may be worse than $27/hr salaried with full benefits.
Health Insurance
Employer coverage can be worth $5,000–15,000/year. Factor this in.
Paid Time Off
2 weeks PTO = 80 paid hours. For hourly, that is 80 × your rate.
Retirement Match
A 4% 401(k) match on $60k = $2,400/year in free money.
Compare Your Offers
Use our calculator to convert hourly to yearly, then compare with salary offers.
Calculate My SalaryFrequently Asked Questions
At 40 hrs, 50 weeks: $30 × 2,000 = $60,000. They are equal. But salary often includes benefits. Compare total compensation.
Ask in the interview. "What does a typical week look like?" or "How many hours do people usually work?"
Exempt salaried employees typically do not get overtime. More hours = lower effective hourly rate.
Know both numbers. If they offer $28/hr, that is $58,240/year (40×52). Ask for $30/hr ($62,400) if you have leverage.
Conclusion
Comparing hourly and salaried offers requires converting both to the same basis and factoring in benefits and expected hours. Use our Hourly-to-Monthly Salary Calculator to get your yearly equivalent, then compare fairly.