Convert both offers using realistic paid hours, then compare expected time worked, benefits and take-home pay separately. The common 2,080-hour year means 40 paid hours for 52 weeks. It is an assumption, not a guarantee for part-time, seasonal or variable-hour work.
Convert the base pay
| Calculation | Formula | What it tells you |
|---|---|---|
| Hourly base to annual gross | Hourly rate × regular paid hours per week × paid weeks | Stated gross pay under that schedule |
| Annual salary to a comparable paid-hour rate | Annual salary ÷ annual paid hours | A normalization for comparing pay formats |
| Effective pay per hour actually worked | Annual gross compensation being compared ÷ annual hours actually worked | A time-commitment comparison, not a legal overtime calculation |
Keep paid leave and hours actually worked distinct. Do not add paid leave as extra cash to an annual salary that already includes it, or count overtime hours once at base pay and again at their full overtime rate.
At $22 per hour and 2,080 paid hours, annual gross pay is $45,760. A $48,000 salary divided by 2,080 is about $23.08 per paid hour. If the hourly role instead provides 30 paid hours for 52 weeks, its annual gross is $34,320. The schedule changes the comparison more than the label does.
Do not confuse salary with overtime exemption
Being paid a salary does not by itself establish exemption from overtime. The U.S. Department of Labor’s exemption guidance explains that the applicable duties and pay tests matter; a job title alone does not determine status. Other federal exemptions and state rules can also apply. Ask the employer how the position is classified and how additional hours are paid.
For planning, list base pay and variable overtime separately. If an hourly example has 40 regular hours at $20 plus five overtime hours at a confirmed $30 rate, weekly gross is $800 + $150 = $950. That is illustrative arithmetic, not a determination that this rate or schedule applies to every job. Do not budget unguaranteed overtime as dependable income.
Compare time on a consistent basis
If a $50,000 salary entails 50 hours of actual work for 50 weeks, the effective rate is $20 per hour worked. Dividing annual salary by weekly hours alone gives the wrong unit; include the number of working weeks. Record commuting time separately rather than silently treating it as paid work.
An hourly arrangement does not guarantee stable hours, and a salaried arrangement does not guarantee short weeks or better benefits. Ask about the actual schedule, on-call duties, leave and coverage during absences.
Move from gross pay to the household comparison
Use consistent estimates of take-home pay after taxes and payroll deductions. Then compare costs that remain, including housing, transport and care costs. Do not subtract a payroll deduction twice. State and local tax treatment can depend on residence, work location and other circumstances; the employer’s address alone is insufficient.
Use the monthly cash-flow calculator once you have comparable take-home estimates. Use the job-offer guide for bonuses, equity, benefits and one-time payments. For relocation, the dated move-in calculator checks whether money arrives before bills are due.
Choose from the complete terms and your needs. Neither hourly nor salary is universally preferable; the useful comparison states its schedule, pay assumptions and unresolved terms explicitly.