Salary vs hourly calculator
Enter the salaried role and the hourly role. The calculator estimates annual value, true hourly value, commute-adjusted hourly value, and the hourly rate needed to match the salary package.
Salaried role
Hourly role
What this calculator is designed to answer
A salary-to-hourly conversion is only a starting point. The better decision often depends on actual weekly hours, paid time off, paid holidays, overtime, unpaid weeks, benefit value and commute drag.
Converts annual value into the pay value per active work hour, rather than assuming every role is exactly 40 hours every week.
Paid time away from work changes the value of each active work hour. More paid time off can offset a lower headline salary.
Hourly roles may earn more with overtime, but unpaid time or fewer paid weeks can reduce the annual value.
How to read the result
| Output | What it means | Use it when |
|---|---|---|
| Annual value | Estimated yearly value before taxes, including selected benefits and expected bonus. | You want to compare the headline financial package. |
| True hourly value | Annual value divided by active work hours after time-off assumptions. | You care about how much the job pays per real work hour. |
| Commute-adjusted hourly value | Annual value after commute cash cost and commute time value, divided by work plus commute hours. | One job is remote or has a shorter commute. |
| Break-even hourly rate | The hourly rate needed to match the salaried role under your assumptions. | You are negotiating an hourly offer or comparing salary vs hourly pay. |
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FAQ
Is salary or hourly pay better?
Neither is automatically better. Salary may provide steadier pay and stronger benefits, while hourly pay may pay more when overtime is available. The better option depends on actual hours, benefits, time off, unpaid time and commute.
Should PTO be included in salary vs hourly comparison?
Yes, if the PTO is paid and usable. Paid time off increases the value of each active work hour because you receive compensation while working fewer days.
How do I compare a salary job with an hourly job that has overtime?
Estimate regular weekly hours, expected overtime hours, overtime multiplier, unpaid weeks, PTO, holidays and benefits. Then compare annual value and true hourly value, not just the stated hourly rate.
Does this calculate taxes?
No. It is a pre-tax decision calculator. Tax rules vary by location, filing situation and payroll classification, so use a tax or paycheck calculator for tax-specific estimates.