Salary vs hourly
How to compare a salary and an hourly offer in 2026
One offer quotes a yearly salary; the other quotes an hourly rate. They look like apples and oranges — but the only fair comparison is after-tax annual take-home pay. This calculator converts both offers to the same basis and shows which one actually puts more money in your pocket.
Step 1: put both on an annual basis
The salaried offer is already annual. For the hourly offer, multiply the rate by hours per week and by weeks worked per year. The common full-time benchmark is rate × 2,080 (40 hours × 52 weeks). A $30/hour full-time job is about $62,400 a year in gross pay — close to a $62,000 salary.
| Hourly rate | Full-time annual (×2,080) | Comparable salary |
|---|---|---|
| $20.00 | $41,600 | ~$42,000 |
| $25.00 | $52,000 | ~$52,000 |
| $30.00 | $62,400 | ~$62,000 |
| $40.00 | $83,200 | ~$83,000 |
Assumes 40 hours/week, 52 weeks/year. Part-time or fewer weeks lowers the annual total.
Step 2: compare take-home, not gross
Two offers with the same gross can differ in take-home if one comes with pre-tax benefits or a different state. This tool applies the 2026 federal brackets, the standard deduction and FICA to both offers so you see net pay side by side. The headline number rarely tells the whole story.
Step 3: adjust for your real hours
A salary divided by actual hours worked is your true hourly rate — and salaried employees who routinely work 50-hour weeks may earn less per hour than they think. Enter your real hours per week to see each offer's genuine hourly value, then weigh stability, benefits and overtime potential before you decide.
Questions
Salary vs hourly calculator FAQ
How do I compare a salary offer to an hourly offer?
Convert both to the same basis. For the hourly job, multiply the rate by hours per week and by weeks worked per year to get annual gross (full-time is rate × 2,080). Then compare both annual figures after tax. This calculator does that automatically and shows the take-home pay for each so you compare what actually reaches your bank account.
Is salary or hourly better?
Neither is universally better — it depends on the numbers and the perks. Salaried roles offer predictable pay and often better benefits, but rarely pay overtime. Hourly roles pay for every hour, including time-and-a-half overtime, but income can vary with hours. Compare the after-tax annual figures and weigh benefits, overtime potential and stability.
How do I convert hourly pay to an annual salary?
Multiply your hourly rate by the hours you work per week, then by the number of weeks you work per year. A common full-time benchmark is rate × 40 × 52 = rate × 2,080. For example, $30/hour full-time is about $62,400 a year before tax.
Does the comparison include taxes?
Yes. Both offers are run through the 2026 federal income tax brackets, the standard deduction and FICA (Social Security and Medicare), so you compare estimated take-home pay, not just gross. Add state tax for either offer using our state pages for an even more precise comparison.
- Sources: IRS Rev. Proc. 2025-32 (2026 brackets & standard deduction) · SSA 2026 OASDI wage base ($184,500) · U.S. Department of Labor (full-time hours benchmark).
- 🔄 Last updated June 9, 2026 · Tax year 2026
← Back to the full salary calculator · Related: Hourly to salary · Salary to hourly · Overtime pay