The conversion, and the quick trick
Annual salary = hourly rate × hours per week × weeks worked. The handy shortcut for a standard full-time year (40 hours × ~50 weeks = 2,000 hours) is to multiply your hourly rate by 2,000: $25/hour ≈ $50,000/year. In reverse, divide a salary by 2,000 to estimate the hourly equivalent — a $60,000 salary is about $30/hour.
Why "weeks worked" matters
Hourly workers are usually paid only for hours actually worked, so unpaid time off directly reduces annual income. Salaried employees are typically paid across all 52 weeks including vacation. That difference — captured by the "weeks worked" field — is a real gap when comparing an hourly role to a salary. The "if paid all 52 weeks" line shows the ceiling if every week were compensated.
Comparing offers fairly
- Benefits: salaried roles often include paid leave, health coverage, and retirement matching that hourly roles may not. Add their value before comparing.
- Overtime: hourly work may pay 1.5× beyond 40 hours — a premium salaried staff rarely get.
- Stability: salary smooths income across slow periods; hourly pay swings with available hours.
All figures here are gross (pre-tax). Your take-home depends on your tax situation — use a take-home pay estimator for the net comparison that actually hits your bank account.