Compare Salary Offers Across Pay Periods
When evaluating multiple job offers, compensation is often quoted differently — one offer gives an annual salary, another offers an hourly rate, and a third states a monthly figure. Without converting everything to the same basis, you cannot make an accurate comparison. The salary calculator converts between all pay periods instantly, helping you compare offers apples-to-apples and understand the true value of each compensation package.
Converting Between Pay Periods
Standard conversions assume 40 hours/week and 52 weeks/year (2,080 annual hours): Hourly × 2,080 = Annual. Annual ÷ 12 = Monthly. Annual ÷ 26 = Biweekly. For example, a $35/hour offer equals $72,800 annually ($35 × 2,080). A $6,500/month offer equals $78,000 annually ($6,500 × 12). The monthly offer is worth $5,200 more per year — a difference that is easy to miss without converting.
Beyond Base Salary: Total Compensation
Base salary is only part of total compensation. Benefits to quantify include: health insurance (employer contribution worth $5,000-20,000/year), retirement matching (3-6% of salary), paid time off (each PTO day is worth your daily rate), bonuses and equity, and professional development budgets. A $85,000 offer with full benefits can be worth more than $100,000 with minimal benefits once you account for the cost of self-funding health insurance and retirement.
Hourly vs Salary: Key Differences
Hourly employees earn overtime (typically 1.5× rate) for hours beyond 40/week, while salaried employees generally do not. If a salaried position regularly requires 50 hours/week, the effective hourly rate drops by 20%. A $70,000 salary at 50 hours/week equals $26.92/hour effective, while a $30/hour position at 40 hours with occasional overtime might yield $65,000-70,000 with better work-life balance.
Cost of Living Adjustments
A $100,000 salary in San Francisco has roughly the same purchasing power as $55,000 in Austin, Texas. When comparing offers in different cities, use cost-of-living indices to normalize salaries. Key factors include housing (the largest variable), taxes (state income tax ranges from 0% to 13%), transportation, and healthcare costs. The salary calculator helps you establish the base comparison before applying location adjustments.