Two offers: $50/hour or $100,000 salary. Same number on paper (50 × 2,000 = 100k). Radically different deals once you count overtime, PTO, benefits, and what the job really asks of your time.
The raw conversion
Annual ≈ hourly × 2,000. Hourly ≈ annual ÷ 2,000. That’s based on 40 hours × 50 weeks (assuming 2 weeks off). If you work all 52 weeks, use 2,080. If you routinely work 50-hour weeks, the honest denominator is 2,500 — and your $100k salary is really a $40/hour job.
What hourly gets you
- Overtime at 1.5×. Federally mandated above 40 hours for non-exempt workers. The 10th and 11th hours of your day are worth 50% more than the first.
- Paid for every hour you’re present. Stay late? You’re paid. Long lunch unpaid.
- Clear boundaries. The clock is the contract.
What salary gets you
- PTO, holidays, sick days. 15–25 paid days a year is normal. Hourly workers typically don’t get these.
- Benefits. Health insurance, 401(k) match, dental, vision. Often worth 20–30% on top of base.
- Bonus & equity. Upside that hourly roles rarely see.
- Stability. You get paid whether there’s work or not this week.
The real comparison
$50/hour with no benefits, 2 weeks unpaid vacation, and no bonus isn’t $100k. It’s closer to $96k gross (2 unpaid weeks cost $4k) minus the value of benefits (~$15–25k a year). The salaried $100k with benefits is the better deal on total comp — unless the job routinely demands 55+ hours a week, in which case the effective hourly rate collapses back to match.
Convert between hourly, weekly, monthly, and annual pay. See what each offer really amounts to.