Salary to Hourly Converter

Salary vs. Hourly: How to Convert and Compare

Whether you are evaluating a job offer, negotiating a raise, or comparing two positions, knowing how to convert between annual salary and hourly rate is essential. This calculator handles the math while accounting for vacation time and varying work schedules.

The Basic Formula

Hourly Rate = Annual Salary ÷ (Working Weeks × Hours per Week)

A standard full-time employee works 40 hours per week for 52 weeks, giving 2,080 working hours per year. With two weeks of vacation, that drops to 2,000 hours. A $50,000 salary equals roughly $25.00/hour with no vacation, or $25.00/hour paid across the full year (since salaried employees are paid during vacation).

What This Means in Practice

• Salaried employees receive the same paycheck regardless of hours worked. Overtime is generally not paid for "exempt" salaried positions (those earning above the FLSA threshold).
• Hourly employees are paid only for hours worked, but they are entitled to overtime pay (typically 1.5x) for hours exceeding 40 per week under the Fair Labor Standards Act.

Overtime Considerations

Under federal law, non-exempt employees must receive overtime pay at 1.5 times their regular rate for any hours worked beyond 40 in a workweek. Some states have additional rules, including daily overtime thresholds. When comparing a salaried offer to an hourly one, factor in whether you are likely to work more than 40 hours regularly.

Benefits and Total Compensation

Salary is only part of the picture. Health insurance, retirement contributions, paid time off, and other benefits can add 20-40% to the value of a compensation package. When comparing offers, always consider total compensation, not just the base number.