US Salary vs Hourly Calculator

A $30/hour offer and a $60,000 salary look comparable - 30 x 40 x 50 = $60,000 - but they often work out very differently. The salary role might pay for 11 holidays and 15 vacation days (about $7,800 of paid time off), full-year health insurance, and 401(k) match. The hourly role might give holiday pay only on actually-worked holidays and require you to fund all gap weeks yourself.

Once you account for benefits, the salary role's true total compensation might be $75,000-85,000, while the hourly role at $30 might cap at around $62,000 if benefits are sparse. Hourly does win on overtime - over 40 hours a week, the hourly worker gets 1.5x rate, the salaried worker typically gets nothing extra (unless non-exempt under FLSA).

Federal law requires overtime pay (1.5x) on hours over 40/week unless an employee is 'exempt' - typically meaning paid a salary above a threshold ($684/week in 2024, raising to $1,128/week from 2025) AND in an executive, administrative, professional, or specific other role. Many salaried workers below the threshold or outside qualifying duties should legally get overtime but employers do not always know or comply.

Misclassification is widespread, especially in mid-pay tech, design, and operations roles. If you regularly work 50+ hour weeks on a low-end salary, calculate what you would earn hourly with overtime - often it is significantly more than your salary equivalent. The Department of Labor publishes the criteria; if you suspect misclassification, you can file a complaint or sue for back overtime.

Hourly workers face cashflow swings. A 4-hour shift pays $120, an 8-hour shift $240. Sick days, weather closures, and slow weeks all hit your paycheck directly. Salary smooths cashflow but typically removes the upside of busy weeks. Build a 1-2 month cash buffer if shifting from salary to hourly to absorb the variance.

Tax withholding works the same way (W-4 based) but quarterly fluctuation is bigger for hourly. Big overtime weeks can trigger temporarily higher withholding rates that wash out at year-end. Use the [US Paycheck Calculator](/us-paycheck-calculator) to model both options at your specific tax situation.

Salary wins for: predictable cashflow, paid time off, employer benefits, career-track roles. It also typically signals more job security in white-collar roles. Hourly wins for: jobs with reliable overtime (manufacturing, healthcare, trades), variable-hours flexibility, clear hour-by-hour pay protection, freedom to take unpaid time off without contention.

The current US trend in many industries is shifting toward salary at the white-collar end and away from hourly toward contractor (1099) at the gig end. Compare offers on full-year total compensation, not just rate. Use the [US Hourly Wage Calculator](/us-hourly-wage-calculator) to convert any rate or salary to comparable terms.