Salary Converter
Convert between hourly wage and annual salary
Last updated: January 2025
About This Tool
Understanding the true value of your compensation requires converting between hourly wages and annual salary. This calculator helps you compare job offers, negotiate pay, and budget based on your actual earnings.
What is Salary Converter?
Salary conversion translates pay rates between different time periods - hourly, daily, weekly, bi-weekly, monthly, and annually. Understanding these conversions is essential for comparing job offers, especially when switching between hourly and salaried positions.
How It Works
The calculator uses standard assumptions about work hours (typically 40 hours per week, 52 weeks per year) to convert between pay periods. It can also account for paid time off, which affects the actual hourly value of salaried positions.
Formula
Annual Salary = Hourly Rate x Hours per Week x Weeks per Year
Annual Salary
$62,400
Pay Breakdown
Working 40h/week for 50 weeks
2,000 hours/year
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When to Use This Calculator
- 1Comparing hourly job offers to salaried positions
- 2Negotiating pay in a different format than offered
- 3Calculating your true hourly rate from a salary
- 4Budgeting based on weekly or monthly income
- 5Understanding the impact of overtime on annual earnings
Pro Tips
- •Include benefits value when comparing offers (health insurance, 401k match)
- •Remember salaried positions often require more than 40 hours
- •Factor in commute costs and time for true comparison
- •Consider job security differences between hourly and salaried roles
- •Account for paid time off, which effectively increases hourly value
Common Mistakes to Avoid
- •Forgetting to account for unpaid time off for hourly workers
- •Not considering that salaried often means unpaid overtime
- •Ignoring benefits when comparing compensation packages
- •Using 50 instead of 52 weeks in annual calculations
- •Not accounting for taxes when calculating take-home pay