Hourly to Salary Conversion
Converting hourly wages to annual salary helps compare job offers and understand total compensation. The standard calculation uses 2,080 hours per year (40 hours × 52 weeks). A $35/hour wage equals $72,800 annually at full-time hours. However, actual take-home depends on taxes, benefits, and whether you receive paid time off.
Hourly positions often lack benefits that salaried positions include: paid vacation, sick leave, health insurance, and retirement contributions. When comparing hourly to salaried positions, factor in benefits' value. Health insurance alone can be worth $7,000-20,000 annually. A $60,000 salary with full benefits may exceed a $35/hour ($72,800 annual) position without benefits.
Hourly workers are typically non-exempt (eligible for overtime at 1.5× pay over 40 hours), while salaried workers are often exempt (no overtime pay). For high-hour workers, hourly can be more lucrative. However, hourly positions offer less income stability - hours can be cut during slow periods. Consider both the rate and the consistency of hours when evaluating hourly work.
Quick Tips
- Always compare APR, not just interest rates
- Use the Rule of 72 to estimate doubling time
- Extra payments dramatically reduce total interest
Frequently Asked Questions
Typically 40 hours per week, 2,080 hours annually. Some industries consider 35-37.5 hours full-time. For benefits eligibility (especially health insurance), the ACA defines full-time as averaging 30+ hours weekly.
Depends on hours worked and benefits. Hourly pays overtime (1.5× over 40 hours), while salaried typically doesn't. But salaried often includes better benefits, paid time off, and more stability. Compare total compensation, not just rate.
Depends on location and industry. $15-20/hour is entry-level in most markets. $25-40/hour is mid-career professional. $50+/hour is specialized or senior. In high-cost areas like SF or NYC, add 30-50% to these ranges.
Some do, some don't. Full-time hourly workers often receive health insurance, retirement plans, and paid time off, though typically less generous than salaried benefits. Part-time hourly workers rarely receive benefits.
Yes, divide annual salary by 2,080. A $62,400 salary equals $30/hour. This helps compare offers and understand your true rate when working long hours. If you're salaried but working 60-hour weeks, your effective hourly rate is much lower.