How to Compare Job Offers Using a Salary Converter

Offer A: $78,000/year salary. Offer B: $42/hour with overtime available. Which is better? You cannot compare until both are in the same unit. Here's the framework.

Step 1: Convert to the Same Unit

Open the Salary Converter. Enter each offer and convert to annual.

	Offer A	Offer B
Base	$78,000/year	$42/hour
Annual equivalent	$78,000	$87,360 (40h x 52wk)
Monthly	$6,500	$7,280
Hourly equivalent	$37.50	$42.00

On paper, Offer B pays $9,360 more per year. But we are not done.

Step 2: Add Benefits Value

Benefit	Offer A (salary)	Offer B (hourly)
Health insurance	Employer pays 80% ($8,400 value)	You pay 100% ($10,500/yr)
401k match	4% match ($3,120)	No 401k
Paid time off	3 weeks ($4,500)	Unpaid time off
Paid holidays	10 days ($3,000)	Unpaid holidays
Total benefits	~$19,020	$0
Total compensation	$97,020	$87,360
Net after buying own insurance	$97,020	$76,860

After accounting for benefits, Offer A is actually worth $20,000 more. The $42/hour rate looked better until benefits entered the equation.

Step 3: Factor in Actual Hours

If Offer B regularly has overtime at time-and-a-half ($63/hour), the math shifts:

Scenario	Offer B annual
40 hours/week (no OT)	$87,360
45 hours/week (5h OT)	$103,740
50 hours/week (10h OT)	$120,120

At 50 hours with overtime, Offer B jumps to $120,120 gross. Even after buying your own insurance, that is more than Offer A. But you are working 10 extra hours per week. The hourly rate adjusted for total hours: $120,120 / (50 x 52) = $46.20 effective. Compare that to Offer A's $37.50 for 40 hours.

Step 4: Consider Non-Financial Factors

• Commute: remote vs 45-minute drive. That is 7.5 hours/week and $200-$400/month in gas/wear.
• Stability: salary is guaranteed. Hourly can be cut to 30 hours if business slows.
• Growth: which job leads to better opportunities in 2-3 years?
• Flexibility: can you set your own schedule? Work from home?

The converter gives you the financial foundation. The decision includes everything else too.