This wage calculator converts any salary into hourly pay. Plus, it will also factor in...show more instructions
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Convert Your Salary To Hourly Pay
Figuring out how to compare job offers can be challenging.
There are so many factors involved in the decision.
One offer could be salary and another hourly. One includes comprehensive benefits and another offers no benefits.
The purpose of this Wage Calculatoris to convert salary to an hourly paycheck while factoring in all benefits and other related costs.
This makes the math easy so you can compare apples to apples and know which employer is making the best offer.
Evaluating An Offer
Ultimately, the formula for comparing job offers is relatively simple. An employer takes your time, and you receive compensation in exchange.
Therefore, regardless of your compensation package, you'll want to sum up all forms of compensation you receive, subtract all costs associated with earning that compensation, and then divide the entire result by the total hours spent to earn that compensation.
In short, everything should be added up and converted to an hourly paycheck (your time) so all offers can be considered equally.
It's the first mistake most people make when comparing job offers: they don't reduce the whole process to hourly compensation for easy comparison.
Related: Why you need a wealth plan, not a financial plan.
That's why this handy wage calculator converts all salary and benefit numbers to a single hourly number – it makes comparisons between job offers easy.
Economic Factors To Consider
The second biggest mistake most people make when evaluating job offers is failing to consider your entire compensation package.
For example, it's not just how much you earn, but what lifestyle it will buy based on cost of living comparisons for different job locations. A generous salary for Kansas City might be barely livable in New York or San Francisco.
The value of benefits packages can vary hugely from one job to another, and will have different values to you based on your age and marital status.
If you're switching jobs make sure to amortize relocation expenses into your analysis.
How many hours do you expect to work? Some workaholic environments might pay well, but when you factor in the 60-80 hours weeks expected it can make that same compensation not look so great.
What other costs are involved, and what will be paid for by your employer? Add it all up.
Make sure to calculate long-term financial impacts, commuting costs, and health or childcare benefits. Also include work related expenses that are not paid by the company.
You may also include in the calculator other things such as vacation time, moving expense reimbursem*nt, paid personal days, etc. Try to get everything in there so the calculation is complete.
Finally, make sure to include the intangibles such as the actual workspace, travel responsibilities, schedule flexibility and staff friendliness.
In short, factor everything you can into your analysis and use this wage calculator to compare your hourly and salary pay offers so you know which is the best offer to take.
Make Sure To Include These Benefits In Your Hourly/Salary Calculation
Below is a quick checklist of potential benefit packages to include in your calculation:
- Personal leave (including vacation and sick leave)
- 401k/403b/pension/retirement plans
- Health, dental, vision insurance
- Profit sharing
- Tuition reimbursem*nt
- Flexible schedule
- Telecommuting
- Cell Phone/laptop
- Travel duties
- Holidays
- Life Insurance
- Disability coverage
- Stock options
- Maternity/paternity leave
- Compensation Time
- Signing bonus
- Company car
- Relocation cost coverage
In Summary
In summary, there is a lot to factor in when comparing various job offers.
The concept is simple on the surface. Add all forms of compensation and benefits together then subtract all costs paid to earn that compensation. Finally, convert that net compensation number to an hourly rate by dividing it by the total hours required to earn that income.
Related: Here’s a scientific system to build your wealth now
If that sounds like a lot, this wage calculator makes the process point-and-click easy by including all factors so that you can conveniently reduce all that complexity to a single number for comparison.
I hope it helps you make a smart decision during your job hunt.
Term Definitions
- Take Home Salary– The amount of pay leftover after taxes and other deductions.
- Work Hours– How many hours you work per pay period.
- Pay Period-Weekly, Bi-Weekly, Monthly?
- Coffee Break / Lunch Break– How many minutes are you entitled for coffee and lunch break?
- Travel Time– How many minutes do you need to travel from your home to your work place daily?
- Miles Driven– How many miles are you going to drive daily?
- Other Personal Expenses– This includes payment for day care, dining out, parking fees, clothing expenses, etc.
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