How to Convert Salary to Hourly
Salary divided by 2,080 hours (40 hours times 52 weeks) is the common shortcut, but PTO, unpaid leave, overtime and benefits change the real hourly rate. Compare offers using actual hours worked plus total benefits.
Three ways to calculate
Nominal: salary divided by 2,080 for quick comparison.
Actual: salary divided by (2,080 minus PTO hours plus unpaid leave).
With overtime: for non-exempt roles, include 1.5x overtime.
Do not ignore benefits
Convert health insurance, retirement match, bonus and equity into annual value.
Count commute, equipment and on-call time as costs.
Compare total compensation, not just base salary.
FAQ
Why 2,080 hours?
40 hours times 52 weeks, the common baseline for salary-to-hourly.
Is PTO counted as work time?
It is a benefit, but real hourly rate should divide by actual hours worked.
How is overtime calculated?
Usually 1.5x for non-exempt employees; confirm state/contract rules.