Salary vs Hourly Calculator, Which Job Offer Pays More?
Choosing between a salary and an hourly wage is one of the most common, and most miscalculated, career decisions you will ever make. The mistake almost everyone makes is dividing the salary by 2,080 and comparing the result to the hourly rate, as if that were the whole story. It is not: salaried employees routinely work 45 or 50 hours with no overtime premium, while hourly workers are paid for every extra hour, usually at time and a half past 40, and often get steadier schedules. Then there is the benefits gap: employer paid health insurance, a 401(k) match and paid time off can add 25 to 40% to a salary's real value, while hourly roles with unpaid weeks lose pay for every week off. This salary vs hourly calculator puts both offers on one honest ledger: each offer's true hourly rate using your real weekly hours, the hourly offer annualised with overtime priced in, the dollar difference with benefits included, and the breakeven overtime where the hourly offer would catch up. Enter both offers, your honest hours and what the benefits are worth, the calculator declares a winner in plain English.
Last updated: October 22, 2026
Your result
Compares gross pay plus benefits, taxes, retirement contributions and deductions are not included. Be honest about salaried hours: unpaid extra hours quietly cut the salary's true hourly rate.
The formula
Salary true hourly = (annual salary + benefits value) ÷ (typical hours per week × weeks per year)Hourly annual pay = hourly rate × weekly hours × weeks + overtime hours × multiplier × rate × weeksHourly true hourly = total hourly annual pay ÷ total hours worked (regular + overtime)Winner = the offer with the higher total annual value; difference = salary total − hourly total
A worked example
Offer A: $65,000 salary, real 45 hour weeks, 50 weeks, $12,000 of benefits → $77,000 total comp, $34.22 per true hour ($28.89 before benefits). Offer B: $35/hour, 40 hours, 50 weeks, no overtime, no benefits → $70,000, exactly $35.00 an hour. The salary offer wins by $7,000 a year in total comp, yet the hourly offer pays 78 cents more per hour actually worked. That gap is why the headline numbers lie.
More about the Salary vs Hourly Calculator
The 2,080 trap: why salary ÷ hours lies
The lazy comparison, $65,000 ÷ 2,080 = $31.25/hour, assumes you work exactly 40 hours, exactly 52 weeks, with paid leave. Salaried workers rarely do: the moment you work 45 hour weeks, that $65,000 is worth $27.78 an hour; at 50 hours, $25.00. Enter the hours you will really work, not the hours in the offer letter.
Hourly offers have the opposite problem: the headline rate understates them when overtime is real. Five hours a week at time and a half on a $30 rate adds $11,700 a year, more than many raises. This is also why <a href="/hourly-to-salary-calculator/">hourly to salary conversions</a> must price overtime separately instead of folding it into one rate.
Putting a dollar value on benefits
Benefits are where salaried offers usually pull away. Ask HR for three numbers: the employer's annual health insurance premium contribution, the 401(k) or pension match, and paid days off converted to weeks of pay (15 days ≈ 3 weeks ≈ salary × 3 ÷ 52). A family health plan alone can be worth $12,000, $18,000 a year.
Typical total benefits run 25 to 40% of base salary, which is why the benefits field defaults to $12,000 on a $65,000 offer. If the hourly offer comes with benefits too, enter them in the hourly benefits field; the comparison stays honest either way.
Overtime: the hourly offer's secret weapon
Non exempt hourly workers must be paid at least 1.5× for hours past 40 per week in the US, a legal premium salaried roles simply do not get. The calculator's breakeven overtime row answers the most useful question of all: how many weekly overtime hours would the hourly offer need to match the salary offer?
If that number is small, say 3 hours a week, the hourly offer is genuinely competitive for anyone willing to work a little extra. If it is 15 hours, the salary offer is out of reach for most people's schedules.
Reading your result: the two numbers that matter
The winner row names the offer with the higher total annual value, gross pay plus benefits. But do not stop there: compare the two true hourly rates beside it. A salary can win on total comp while losing per hour, which means you are buying that extra $7,000 with five unpaid hours a week. Decide whether that trade is one you would sign for deliberately.
Comparing two salary only or hourly only offers instead? Our <a href="/contractor-vs-employee-calculator/">contractor vs employee calculator</a> handles the self employment tax side, and <a href="/freelance-rate-calculator/">the freelance rate calculator</a> works backwards from the income you want.
What the maths cannot decide for you
Money is only one axis. Salaried roles usually bring predictable pay, paid sick days, and steadier paths to promotion; hourly roles bring pay for every extra hour and, often, clearer boundaries, when the shift ends, the meter stops. Neither is objectively better, which is why this page sits inside the <a href="/work-career-calculators/">Work & Career calculators</a> next to tools for freelancers and contractors.
This calculator works in gross pay plus benefits, income tax, retirement deductions and payroll taxes are not included. For take home figures, run the winning offer through your country's income tax and <a href="/paycheck-calculator/">paycheck calculator</a> next.
How to use the Salary vs Hourly Calculator
- Enter the salary offer and the hours you will really work each week, not the contracted hours.
- Add the cash value of benefits: health insurance, 401(k) match, and paid days off converted to weeks of pay.
- Enter the hourly rate, weekly hours, and expected overtime with its multiplier, 1.5 is standard.
- Press Calculate: read the winner, the annual difference, and the breakeven overtime hours.
Frequently asked questions
How do I fairly compare a salary offer with an hourly offer?
Annualise the hourly offer with your real weeks and overtime at its actual multiplier, add the salary offer's benefits as cash value, then compare totals, not hourly rates. Divide each total by the hours actually worked to get the true hourly rate. This calculator does all of that in one pass.
Why is dividing a salary by 2,080 hours misleading?
The 2,080-hour year assumes exactly 40 hours a week for 52 weeks with paid leave. Salaried workers who really do 45 hour weeks earn about 11% less per hour than the 2,080 math claims. Hourly workers with unpaid weeks or overtime break the assumption the other way.
How do I value benefits when comparing job offers?
Ask HR for the employer's annual health insurance contribution, the 401(k) or pension match, and convert paid days off to weeks of pay (15 days ≈ 3 weeks of salary). Add them up: typical total benefits run 25 to 40% of base salary and can easily flip a close comparison.
Does this calculator include taxes?
No, every figure is gross pay plus benefits, before income tax, payroll taxes, pension or health premiums. Tax rates differ wildly by state and country, so compare offers gross first, then run the winner through your country's income tax calculator for take home pay.
How many working hours are there in a year?
A full time schedule of 40 hours a week for 52 weeks totals 2,080 hours before holidays and paid time off are subtracted. That 2,080 figure is the standard starting point for converting between salary and hourly pay.
Do hourly jobs pay overtime when salaried jobs do not?
Hourly employees are generally entitled to overtime pay for hours worked beyond the standard week, while many salaried roles are classed as exempt. Which rules apply depends on the job's duties and pay level, so check the terms in the offer.
Should I compare gross pay or take home pay when weighing two offers?
Start with gross pay plus the value of benefits, because tax deductions depend on your personal circumstances and location. Then sanity check the take home difference with a paycheck calculator for where you live.
How do I convert salary to hourly wage?
Divide annual salary by 2,080 (40 hours × 52 weeks). A $60,000 salary equals about $28.85/hour. For a more realistic figure including paid time off, divide by 2,000 hours instead, the difference is small but meaningful when comparing offers.
What 1099 rate equals a $100,000 W-2 salary?
As a rule of thumb, your 1099 hourly rate should be 1.5 to 1.8 times the naive conversion ($100,000 ÷ 2,080 = $48/hr), so roughly $72-$86 per hour minimum. The markup covers self employment tax, lost benefits, overhead, and unbillable time. A 1099 vs W-2 calculator gives a precise break even rate for your situation.