Salary Comparison Calculator

Current Job

New Offer

Solution

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How It Works

The salary comparison calculator converts each job offer to the same gross-pay basis before comparing them. Hourly offers are multiplied by hours per week and weeks per year to get annual pay. Salary offers start from the annual salary, then divide by annual hours to find the hourly equivalent. Once both offers are normalized, the calculator subtracts the current job from the new offer to show yearly, monthly, weekly, and hourly differences.

Example Problem

Your current job pays $25.00 per hour for 40 hours per week and 52 weeks per year. A new offer pays $60,000 per year on the same schedule. Which offer pays more?

  1. Current annual hours = 40 x 52 = 2,080 hours.
  2. Current annual pay = $25.00 x 2,080 = $52,000.00.
  3. New offer annual pay = $60,000.00.
  4. New offer hourly equivalent = $60,000.00 / 2,080 = $28.85/hr.
  5. Yearly difference = $60,000.00 - $52,000.00 = $8,000.00.
  6. Hourly difference = $28.85/hr - $25.00/hr = $3.85/hr.

This is a gross-pay comparison. Benefits, taxes, bonus eligibility, commute cost, overtime, and paid time off can change the real value of an offer.

Key Concepts

A fair job-offer comparison needs the same time basis for both offers. A salary can look larger than an hourly job until you adjust for hours, unpaid weeks, or a longer schedule. An hourly offer can look smaller until overtime or fewer unpaid weeks are considered. This calculator focuses on straight-time gross pay so you can make the pay comparison first, then evaluate benefits and lifestyle factors separately.

Applications

  • Comparing a current job with a new offer
  • Checking whether a salaried role beats an hourly role on the same schedule
  • Seeing how part-time, seasonal, or unpaid weeks change the real annual difference
  • Translating a raise or job switch into monthly and weekly budget impact
  • Estimating the hourly equivalent of a salary offer before negotiating

Common Mistakes

  • Comparing annual salary to hourly rate without converting both to the same basis
  • Using 52 weeks when one offer has unpaid time off or seasonal gaps
  • Ignoring that a salaried role may expect more hours than the listed schedule
  • Treating gross pay as take-home pay after taxes and deductions
  • Forgetting benefits, bonuses, commute costs, and overtime opportunity when making the final decision

Frequently Asked Questions

How do I compare an hourly job to a salary offer?

Convert the hourly job to annual pay by multiplying hourly rate x hours per week x weeks per year. Then compare that annual amount with the salary offer. You can also divide the salary by annual hours to find its hourly equivalent.

What does a positive difference mean?

A positive difference means the new offer pays more than the current job on the entered schedules. A negative difference means the current job pays more.

Should I use 52 weeks per year?

Use 52 if the pay covers the full year or you are paid for vacation and holidays. Use fewer weeks if the job is seasonal, contract-based, or includes unpaid time away.

Does this calculator include overtime?

No. It compares straight-time gross pay. If one offer includes regular overtime, compare that separately with an overtime paycheck calculator.

Is the higher-paying offer always better?

Not necessarily. Gross pay is only one part of the decision. Benefits, commute time, schedule flexibility, paid time off, job stability, growth opportunities, and taxes can all affect the better choice.

Can I compare two hourly jobs?

Yes. Set both offers to hourly, enter each rate and schedule, and the calculator will compare the annual, monthly, weekly, and hourly differences.

Reference: Standard payroll comparison convention: normalize each offer to annual gross pay, then compare the same yearly, monthly, weekly, and hourly equivalents.

Worked Examples

JOB SWITCH

Hourly job vs annual salary offer

A current job pays $25.00 per hour. A new role offers $60,000 per year on the same 40-hour, 52-week schedule.

  1. Current annual pay = $25.00 x 40 x 52 = $52,000.00.
  2. New offer annual pay = $60,000.00.
  3. Yearly difference = $60,000.00 - $52,000.00 = $8,000.00.
  4. New offer hourly equivalent = $60,000.00 / 2,080 = $28.85/hr.
  5. Hourly difference = $28.85/hr - $25.00/hr = $3.85/hr.

This is the cleanest comparison because both offers use the same schedule.

PART-TIME

Higher hourly rate with fewer hours

A new offer pays more per hour, but it has fewer scheduled hours each week.

  1. Current job = $22.00 x 40 x 52 = $45,760.00 per year.
  2. New offer = $28.00 x 30 x 52 = $43,680.00 per year.
  3. Yearly difference = $43,680.00 - $45,760.00 = -$2,080.00.
  4. The higher hourly rate is not enough to offset the lower schedule.

This example is why comparing only hourly rates can be misleading.

SEASONAL

Annual salary vs contract schedule

A salaried role competes with a contract job that pays a higher hourly rate but only runs 46 weeks per year.

  1. Current salary = $68,000.00 per year.
  2. Contract annual pay = $38.00 x 35 x 46 = $61,180.00.
  3. Yearly difference = $61,180.00 - $68,000.00 = -$6,820.00.
  4. The contract hourly rate is higher, but the shorter year lowers annual pay.

Use the weeks-per-year field to model unpaid gaps between contracts.

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Disclaimer: This calculator compares gross pay only and does not calculate taxes, deductions, benefits, overtime, bonuses, or legal wage obligations. Use it as a planning estimate, not as payroll, tax, legal, or financial advice.