netpayguide

Salary vs Hourly Calculator 2026

Which pays more?
Salary (Option A) pays more
Annual take-home difference: $72

Option A — Salary

$
Net per paycheck
$2,203
Annual take-home
$57,290

Option B — Hourly

$
Net per paycheck
$2,201
Annual take-home
$57,218
Gross annual: $74,880

How to Compare Two Job Offers

Comparing a salary offer to an hourly offer is harder than it looks because the headline numbers aren't directly comparable. A $75,000 salaried role and a $36/hour position both sound like roughly $1,440 per week, but the actual take-home depends on filing status, state, pay frequency, and how many hours you actually work.

Use this side-by-side calculator to plug in both offers and see net pay per paycheck and per year, after federal income tax, state income tax, Social Security, and Medicare are applied. The summary banner highlights which offer pays more on an annual take-home basis.

When weighing offers, also consider the things this calculator can't capture: overtime eligibility, paid time off, employer-paid benefits, 401(k) match, equity, commute, schedule flexibility, and job security. Hourly roles let you bank time-and-a-half for hours over 40 per week under federal law; salaried exempt roles usually do not. If the two offers come out close on take-home, the non-cash factors typically decide.

Frequently Asked Questions

Is it better to be salaried or hourly?
It depends on your priorities. Salaried jobs typically offer more predictable pay, paid time off, and benefits, but you're often expected to work more than 40 hours without extra pay. Hourly workers earn time-and-a-half overtime under FLSA, which can mean higher pay when hours run long — but income fluctuates with the schedule.
How do I convert hourly to salary (or vice versa)?
Multiply your hourly rate by hours worked per week, then by 52 weeks. A $30/hour job at 40 hours/week is $30 × 40 × 52 = $62,400/year. Going the other way: divide annual salary by 2,080 (40 hours × 52 weeks) to get an approximate equivalent hourly rate.
Do salaried and hourly workers pay the same taxes?
Yes — federal, state, and FICA taxes are based on income, not how you're classified. Two workers earning the same gross income owe the same tax regardless of whether the pay came as salary or hourly wages. Differences in take-home arise from benefits, pre-tax deductions, and overtime eligibility.
What hidden costs should I consider when comparing offers?
Health insurance contributions, 401(k) match, paid time off, bonuses, and equity can swing a comparison by thousands of dollars. An hourly job paying $5,000 more may net less once you account for an unmatched 401(k), unpaid time off, or worse health coverage. Always evaluate total compensation, not just gross pay.

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