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Hourly vs Salary Calculator

See which pays more: hourly or salary.

Result

$58,240.00
$3,240.00
$55,000.00

How it is calculated

The tool turns the hourly pay into a yearly figure and sets it against the salary: annualized hourly = hourly rate × hours per week × 52 and difference = annualized hourly − salary. A positive difference means the hourly job pays more per year, a negative one means the salary pays more. The calculation always uses 52 paid weeks: there is no input for unpaid holidays, sick days or unpaid weeks, so if you will not be paid for some weeks, reduce the hours per week accordingly (for example by multiplying by weeks paid ÷ 52). Benefits, overtime, bonuses and taxes are not included, and all three figures should be before tax. Negative inputs give no result.

Worked example

An hourly job pays 28 for 40 hours a week; a salaried offer pays 55,000 a year. Annualized hourly pay = 28 × 40 × 52 = $58,240.00. Difference = 58,240 − 55,000 = $3,240.00, so the hourly role pays more on paper. But three unpaid weeks (3 × 40 × 28 = 3,360) would erase that, putting the hourly job just below the salary.

Try this example →

Common mistakes

  • Assuming 52 paid weeks when the hourly job has unpaid holidays or leave. The tool always multiplies by 52, so reduce the hours per week to reflect unpaid time.
  • Comparing a gross salary with a net hourly rate, or the reverse. Enter both before tax so the comparison is fair.
  • Entering hours worked per day instead of per week. A full-time week of 40 hours must be typed as 40, not 8.
  • Ignoring benefits. A salaried offer with paid leave, health cover or retirement contributions is worth more than the salary figure alone, and this tool does not count them.
  • Forgetting that a salaried job may involve more than the 40 hours you would be paid for hourly, which lowers its real hourly value.

Sources

About this calculator

Comparing an hourly wage to a fixed salary isn't as simple as looking at the two numbers side by side — an hourly rate has to be annualized first by multiplying it by the number of hours worked per week and the number of weeks in the year, and unpaid time off, part-time schedules, or unpaid overtime can quietly shrink the real annual total.

This calculator does that conversion for you from the hourly rate and hours per week, always counting 52 weeks a year, and lines the annualized hourly figure up against a stated salary so you can see which one actually pays more. Because it does not subtract unpaid weeks off, lower your weekly hours a little if you expect some. It's a common tool for job seekers weighing a salaried offer against an hourly or contract position, for freelancers deciding whether to take a staff role, and for employers benchmarking pay structures against each other.

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Comments (1)

  • Editorial team

    The 52-week assumption flatters hourly work if you are not paid for holidays. At 30 an hour and 40 hours, the default gives 62,400 against a 60,000 salary, a lead of 2,400. Take 4 unpaid weeks and use 36.92 hours instead (40 times 48 divided by 52), and the hourly job falls to 57,595, about 2,400 behind. Do you count unpaid time off in your comparison, and how?

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