Hourly vs Salary: How to Compare Two Job Offers

Headline pay is only part of it. Hours, overtime and paid time off can change which offer is better.

Published 29 October 2026 · Salary

Say you have two offers. One pays $28 an hour. The other pays a $60,000 salary. The quick conversion says $28 an hour is $58,240 a year, so the salary wins. That might be true, but it leaves out three things that often matter more than the headline number.

Step 1: convert the hourly rate properly

The usual shortcut is hourly rate × 2,080, because 40 hours a week for 52 weeks is 2,080 hours. That assumes every week is paid, including vacation and public holidays.

Many hourly jobs don't pay for time off. If you'll take two unpaid weeks a year, you're paid for 50 weeks, not 52:

$28 × 40 hours × 50 weeks = $56,000

The hourly to salary calculator lets you change both the weekly hours and the paid weeks, so you can match the actual job.

Step 2: add realistic overtime

In the US, most hourly employees are paid at least time and a half for hours over 40 in a week. Salaried employees classed as exempt usually aren't paid overtime at all.

Ask what overtime actually looks like in the hourly role. If the honest answer is about 3 extra hours a week:

  1. Overtime rate: $28 × 1.5 = $42 an hour
  2. Per week: 3 × $42 = $126
  3. Per year, over 50 working weeks: $126 × 50 = $6,300

That brings the hourly offer to $62,300, now ahead of the salary. The overtime pay calculator works this out for any rate.

Only count overtime you're confident about. If it's occasional or depends on the season, run the numbers both with and without it.

Step 3: compare what each hour is worth

Salaried roles often come with longer weeks. If the $60,000 job usually means 45-hour weeks, with three weeks of paid vacation, you work 45 × 49 = 2,205 hours a year. The hourly job, at 43 hours a week (40 regular plus 3 overtime) for 50 weeks, is 2,150 hours.

Hourly offerSalaried offer
Yearly pay$62,300$60,000
Hours worked per year2,1502,205
Pay per hour actually worked$28.98$27.21

In this example the hourly job pays more in total and more for each hour you work. With different assumptions, the result could easily flip, which is why it's worth doing the sums for your situation.

Step 4: count the benefits

Pay is only part of the package. Before deciding, compare:

An employer match of a few percent of salary, or a cheaper health plan, can be worth more than a gap of a couple of thousand dollars in pay.

Questions to ask before you accept

Asking these isn't awkward. Employers expect them, and the answers change the math.


Try the calculators


Frequently asked questions

How do I compare an hourly wage to a salary?
Multiply the hourly rate by the hours you'll actually be paid for in a year. For full-time work with every week paid, that's hourly rate × 2,080. Use fewer weeks if some time off is unpaid.
Is $28 an hour better than a $60,000 salary?
At 40 hours a week for 52 weeks, $28 an hour is $58,240, slightly less than $60,000. With regular overtime it can come out ahead, so it depends on the hours and benefits in each job.
Do salaried employees get overtime?
Salaried employees classed as exempt usually don't. Hourly employees in the US generally receive at least time and a half for hours over 40 in a workweek.