The Salary Illusion
"I make $60,000 a year."
Sounds clear, right? But what does it actually mean in terms of your hourly rate?
If you work the standard 40 hours/week for 52 weeks: $60,000 ÷ 2,080 = $28.85/hour
But if you're salaried and regularly work 50 hours/week (which 39% of salaried workers do, according to Gallup): $60,000 ÷ 2,600 = $23.08/hour
That "extra" 10 hours per week just gave you a 20% pay cut that's invisible on your offer letter.
The Quick Conversion Formulas
Salary to Hourly
Hourly = Annual Salary ÷ (Hours/Week × Weeks/Year)
Standard: $60,000 ÷ 2,080 = $28.85/hr
Hourly to Salary
Annual = Hourly Rate × Hours/Week × Weeks/Year
$30/hr × 40 × 52 = $62,400/year
The Rule of 2,000
For a quick mental estimate, divide salary by 2,000 (or multiply hourly by 2,000):
•$50,000 salary ≈ $25/hour
•$75,000 salary ≈ $37.50/hour
•$100,000 salary ≈ $50/hour