Compare gross with gross
An hourly rate and an annual salary use different time units. First convert both to annual gross income, before deductions. At 25 per hour, 40 hours per week and 52 paid weeks, the annual gross equivalent is 52,000. The average monthly equivalent is 4,333.33.
If only 46 weeks are paid, the same hourly rate gives 46,000. That 6,000 difference comes entirely from paid time. It is not a tax difference. Use the number of paid weeks in your contract rather than automatically accepting 52.
A practical comparison table
| Check | Offer A | Offer B |
|---|---|---|
| Paid hours per week | Enter actual hours | Enter actual hours |
| Paid weeks per year | Include paid leave only | Include paid leave only |
| Guaranteed gross pay | Use contracted pay | Use contracted pay |
| Uncertain extras | Keep separate | Keep separate |
Bonuses, commission and overtime should be separate scenarios if they are not guaranteed. Compare commute costs, pension contributions and benefits separately; they can matter even when the gross salary is similar.
Biweekly is not twice monthly
A standard biweekly comparison divides annual pay by 26. Twice-monthly pay divides it by 24. Our hourly-to-annual tool shows the 26-payment convention. Actual payroll calendars can occasionally differ, so check the employer's schedule before budgeting an individual month.
Use hourly to annual to evaluate an hourly offer and annual to hourly to test the implied hourly value of a salary. Neither result is take-home pay. Tax, insurance and other deductions require the applicable jurisdiction and your circumstances.