Salary vs Hourly Comparison Calculator
Put a salary offer next to an hourly rate and find out which one actually pays more, once you account for overtime, PTO, holidays, and benefits.
Annual Salary Offer
Hourly Rate
Hours Per Week
Typical Overtime Hours/Week
Overtime applies to hourly pay only. Most salaried workers are exempt.
Overtime Multiplier
Paid Holidays/Year (Salary)
PTO Days/Year (Salary)
Annual Benefits Value (Salary)
Health insurance, retirement match, and other benefits your employer pays for as part of a salaried position.
Earnings Difference
Overtime hours/week needed for hourly to match salary total compensation.
Track Every Hour, See Your Real Pay
Hours44 calculates overtime for you and shows take-home pay for every shift.
How salary and hourly pay actually compare
Salaried employees get a fixed annual amount no matter how many hours they work. Hourly workers get paid per hour and are eligible for overtime. The Fair Labor Standards Act (FLSA) classifies most salaried workers above $35,568/year as "exempt" from overtime, so extra hours don't increase their paycheck.
Dividing salary by 2,080 gives you a rough hourly number, but it misses a lot. Overtime potential, paid time off, employer-paid benefits, and job stability all affect what you actually take home. This calculator pulls those variables together so you can compare the two options on equal terms.
What salary benefits are really worth
Most people undercount their benefits. In 2026, the average employer-paid health insurance contribution runs about $12,500 per employee (Mercer). A 401(k) match of 3–6% adds another $1,800–$6,000 on a $60,000 salary. Throw in PTO, paid holidays, life insurance, and disability coverage, and the total benefit package is easily $8,000–$20,000+ per year. That's why a $60,000 salary with full benefits often beats $30/hr with none.
When overtime changes the math
The FLSA 1.5x overtime multiplier adds up quickly. An hourly worker at $25/hr with 10 overtime hours per week pockets an extra $19,500 a year, bringing the total to $71,500. That's more than plenty of salaried positions offer. The table below shows how many overtime hours per week it takes for an hourly worker to match different salary levels.
Salary to hourly quick-reference table
Common salaries converted to hourly equivalents. The last two columns show the hourly rate you'd need (with overtime at 1.5x on a 40-hour base week) to match each salary.
| Annual Salary | Hourly Rate | Match w/ 5 OT hrs | Match w/ 10 OT hrs |
|---|---|---|---|
| $35,000 | $16.83 | $14.59 | $12.82 |
| $40,000 | $19.23 | $16.67 | $14.65 |
| $50,000 | $24.04 | $20.83 | $18.32 |
| $60,000 | $28.85 | $25.00 | $21.98 |
| $75,000 | $36.06 | $31.25 | $27.47 |
| $100,000 | $48.08 | $41.67 | $36.63 |
| $120,000 | $57.69 | $50.00 | $43.96 |
Column formulas: Hourly Rate = Salary / 2,080. With 5 OT = Salary / 2,470. With 10 OT = Salary / 2,860.
Which one is right for you?
There's no single right answer here. If you have fixed expenses like rent or a mortgage, income stability probably matters more than earning potential. If you can reliably pick up overtime, hourly might win. People earlier in their careers often do better with salaried roles because of the benefits and on-the-job learning, while experienced tradespeople in high-demand fields tend to earn more through hourly pay with overtime.
Whenever you're weighing a job offer, negotiating a raise, or choosing between two positions, plug in the real numbers here. The math won't tell you everything, but it'll clear up the financial side.
Frequently asked questions
Common questions about comparing salary and hourly pay
Is it better to be paid salary or hourly?
It depends on what you value. Salary gives you steady income, benefits like health insurance and retirement, and usually a clearer path to promotions. Hourly gives you overtime pay, firmer boundaries between work and personal time, and sometimes higher total earnings when things are busy. Plug your numbers into the calculator above to see which one wins for your situation.
How do I convert my salary to an hourly rate?
Divide your annual salary by the number of work hours in a year. With a standard 40-hour week, that's 2,080 hours: $60,000 / 2,080 = about $28.85/hr. If you want your "effective" rate, which accounts for PTO and holidays, divide by the hours you actually work instead of the full 2,080.
Does overtime make hourly pay better than salary?
It can, and often does. At 1.5x overtime, just 5–10 extra hours a week adds $10,000–$30,000 to your annual earnings. The calculator shows you the break-even point: the number of overtime hours where hourly pay catches up to a salary offer.
How much are salary benefits actually worth?
More than most people think. Employer-paid health insurance alone averages about $12,500 per employee in 2026 (Mercer). Add a 401(k) match (typically 3–6% of salary), life insurance, disability, and other perks, and you're looking at $8,000–$20,000+ per year. There's a benefits field in the calculator so you can include them in the comparison.
What is the FLSA overtime exemption salary threshold?
The federal minimum salary for overtime exemption is $684/week ($35,568/year) as of 2026. If you earn less than that, you're generally entitled to overtime pay no matter what your job title says. Some states set the bar higher: California requires $1,352/week and Washington requires $1,541.70/week in 2026.
How does PTO affect the salary vs hourly comparison?
PTO is time you get paid for without working, which raises your effective hourly rate. A salaried worker with 15 PTO days and 10 holidays gets 25 paid days off, worth about $5,769 on a $60,000 salary. Hourly workers usually don't get paid PTO unless their employer specifically offers it, so salary PTO is real money that's easy to overlook.
Can an hourly worker earn more than a salaried worker?
Yes, especially if overtime is consistent. An hourly worker at $25/hr who puts in 50 hours a week (10 overtime hours at 1.5x) earns $71,500/year, which beats plenty of salary offers. The catch: overtime isn't guaranteed, and hourly workers usually get fewer benefits.
What does "effective hourly rate" mean?
It's what you actually earn for each hour you work, once everything is accounted for. For salaried workers, PTO and holidays are hours you're paid for but don't work, so the effective rate ends up higher than a straight salary / 2,080 calculation. For hourly workers, it's the blended rate across regular and overtime hours.
Need More Than a Quick Calculation?
Hours44 tracks your shifts, calculates overtime automatically, and shows your real take-home pay.