Comparing a $27 hourly offer with a $58,000 salary needs a common unit. Converting is straightforward once you decide how many hours a year the job really pays for.
Hourly to annual salary
Annual pay = hourly rate x hours per week x paid weeks per year
A full-time job at 40 hours for 52 weeks is 2,080 hours a year. So $25 an hour is 25 x 2,080 = $52,000.
| Hourly | Weekly | Monthly | Annual |
|---|---|---|---|
| $15.00 | $600.00 | $2,600.00 | $31,200 |
| $20.00 | $800.00 | $3,466.67 | $41,600 |
| $25.00 | $1,000.00 | $4,333.33 | $52,000 |
| $30.00 | $1,200.00 | $5,200.00 | $62,400 |
| $40.00 | $1,600.00 | $6,933.33 | $83,200 |
Salary to hourly
Hourly rate = annual salary / (hours per week x paid weeks per year)
$65,000 divided by 2,080 is $31.25 an hour. For weekly pay, divide the salary by 52. For monthly pay, divide by 12. For biweekly checks, divide by 26.
Why you may see 2,088 instead of 2,080
A year has 52 weeks plus one or two extra days. Counting weekdays instead gives 260 to 262 days. 2026 has 261 weekdays, and 261 x 8 = 2,088 hours. Employers who use a payroll calendar sometimes use 2,088, and the difference is 0.4 percent. SumPanda uses 2,080 by default and lets you change the hours and weeks.
Adjusting for the real situation
- Part-time: use your real hours. 25 hours a week at $22 is 22 x 25 x 52 = $28,600.
- Unpaid weeks: if you take two unpaid weeks, use 50 weeks. $25 x 40 x 50 = $50,000.
- Paid holidays and PTO: these are paid, so they do not reduce the annual total. They do reduce the hours you actually work, so your effective hourly rate on worked hours is slightly lower than the quoted rate.
- Overtime: an hourly worker who regularly works more than 40 hours earns more than 2,080 x rate. A salaried exempt employee does not.
Gross versus take-home
Everything above is gross pay before federal and state income tax, Social Security, Medicare and benefit deductions. Take-home pay depends on your filing status, state and benefits, so compare offers on gross pay and then compare benefits separately.
Salary offers often include benefits that hourly roles do not, such as paid leave or an employer 401(k) match. Put a dollar value on them before deciding which is higher.