The hourly vs salary comparison calculates total annual compensation for both offer types, factoring in overtime eligibility, benefits value, and PTO to show which truly pays more.
Hourly Position
Salaried Position
Enter both positions to compare total compensation.
Compensation Breakdown
Effective Hourly Rate
How to Compare Hourly vs Salary Jobs
The hourly vs salary comparison tool reveals which offer pays more in total — because base pay alone misses overtime, benefits, and PTO that can swing the comparison by $10,000+ per year.
Overtime Changes Everything
A $28/hour hourly position with consistent 42-hour weeks earns $3,120/year in overtime (2 hours × 1.5 × $28 × 50 weeks) — more than most entry-level 401K matches. If you regularly work over 40 hours and are overtime-eligible, hourly positions can beat equivalent salary offers by 5-10%.
Benefits Can Be Worth $10-20K Per Year
Employer health insurance contributions average $7,000-$14,000/year for family plans. A 5% 401K match on a $60,000 salary adds $3,000/year. Combined, benefits can easily add 15-25% to the stated salary. Always compare total compensation, not just base pay.
PTO Has Real Dollar Value
10 days of paid vacation at $28/hour = $2,240 in PTO value annually. When comparing two offers with different PTO allotments, calculate the dollar difference and include it in your comparison. An extra week of PTO is worth $1,200-$2,500 depending on your rate.
FAQ
Is this hourly vs salary tool free?
Yes, completely free with no signup required. All calculations run in your browser.
Is it better to be paid hourly or salary?
It depends on your hours worked and overtime eligibility. If you regularly work 45+ hours/week, hourly pay is usually better because overtime (1.5x after 40 hours) compensates for extra time. Salaried positions often pay better for 40-hour weeks and offer more predictable income with better benefits.
How do I convert hourly rate to annual salary?
Multiply your hourly rate by 2,080 hours (40 hours × 52 weeks). A $25/hour rate equals $52,000/year. For part-time or irregular schedules, multiply by your actual annual hours instead.
Do salaried employees get overtime?
Most salaried employees are classified as 'exempt' and do not receive overtime pay under the FLSA. However, some salaried employees earning below the FLSA threshold ($684/week in 2024) are non-exempt and entitled to overtime. Check your employment classification.
What benefits should I include in the comparison?
Health insurance (employer contribution, typically $6,000-$14,000/year for a family plan), 401K match (typically 3-6% of salary), paid time off value (PTO days × daily rate), and any non-cash perks like commuter benefits, gym stipends, or remote work allowances.