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Salary vs Hourly: How to Compare Two Job Offers Properly
Two offers land in your inbox. One says $58,000 a year. The other says $27 an hour. Which pays more? Most people guess — and guess wrong, because the numbers are designed to be compared badly. This guide gives you the conversion, the shortcuts worth memorising, and the hidden extras that change the answer.
For instant maths, use the free Salary to Hourly Calculator. For the thinking behind it, read on.
The one formula
Hourly rate = annual salary ÷ (hours per week × weeks per year). A standard full-time year is 40 × 52 = 2,080 hours, so the quick method is: salary ÷ 2,080. Going the other way: hourly × 2,080 = salary.
- $40,000 a year ≈ $19.23 an hour · $15 an hour = $31,200 a year
- $50,000 a year ≈ $24.04 an hour · $20 an hour = $41,600 a year
- $60,000 a year ≈ $28.85 an hour · $25 an hour = $52,000 a year
- $75,000 a year ≈ $36.06 an hour · $30 an hour = $62,400 a year
- $100,000 a year ≈ $48.08 an hour · $40 an hour = $83,200 a year
So the opening question answers itself: $27 an hour is $56,160 — the $58,000 salary wins on headline pay by about $1,840 a year. But headline pay is only the start.
The hidden differences
- Paid time off. A salaried $58,000 includes holidays and vacation in the number. An hourly worker who takes two unpaid weeks works 50 weeks: $27 × 40 × 50 = $54,000. Always convert with your real weeks — the calculator lets you change them.
- Overtime. Non-exempt hourly roles in the US usually pay 1.5× past 40 hours a week. Five extra hours a week at $27 adds about $10,500 a year — enough to flip the comparison completely. Salaried exempt roles typically get nothing extra.
- Benefits. Employer health insurance and pension contributions can be worth 15–30% on top of salary. If one offer has them and the other does not, the "lower" offer may be worth far more.
- Stability. Hourly work can mean variable weeks. A guaranteed salary is worth something real if your hours would swing.
Negotiating with the numbers
Whichever side of the table you sit on, convert the other side's number into your unit before you answer. Asked for a salary and thinking in hourly? Quote the annual figure that equals your rate at 2,080 hours, then add a margin for the unpaid gaps salaried staff get covered. Employers expect this maths — doing it calmly signals you know your value.
And once you have a headline figure, the number that actually lands in your bank is take-home pay. Run your offer through the Paycheck Calculator to see it after federal and state tax — state alone can change the answer by thousands.