One job posts "$28/hour," another posts "$58,000/year," and a third posts "$4,833/month." Comparing them at a glance is nearly impossible — until you convert them all to the same unit. Here's how salary conversion actually works, and the one distinction that matters more than any of the math.
The Standard Work Year
Most salary conversions start from a standard work year: 52 weeks × 40 hours = 2,080 hours per year for a typical full-time role. From there:
- Hourly → Annual: hourly rate × hours per week × weeks per year
- Annual → Hourly: annual salary ÷ 2,080 (adjust if your hours per week differ)
- Annual → Monthly: annual salary ÷ 12
- Annual → Weekly: annual salary ÷ 52
- Annual → Bi-weekly: annual salary ÷ 26
Gross vs Net Pay: The Distinction That Actually Matters
Every conversion above works with gross pay — your salary before anything is taken out. What actually lands in your bank account is net pay (take-home pay), after:
- Federal income tax
- State and local income tax (where applicable)
- Social Security (6.2% in the US, up to a wage cap)
- Medicare (1.45% in the US)
- Any retirement contributions, health insurance premiums or other deductions
Two people with the same gross salary can have noticeably different take-home pay depending on their state, filing status, and benefit elections — which is why comparing two job offers by gross salary alone can be misleading.
Why This Matters When Comparing Job Offers
A higher hourly rate with fewer guaranteed hours, or a salaried role with unpaid overtime expectations, can end up paying less in practice than a lower headline number with better structure. Converting every offer to the same period — and then thinking about gross vs. net — gives you an honest, apples-to-apples comparison.
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