Worked example: $32/hour, 40 hours, 5 OT hours, 50 weeks
Straight time is $1,280/week. Five overtime hours at $48 add $240, for $1,520 weekly. Over 50 paid weeks that is $76,000 — versus $66,560 with no overtime and $79,040 working all 52 weeks. The two unpaid weeks cost $2,560; if that time off is worth it to you, fine — just price it knowingly.
- • Lenders qualify hourly workers on base pay; OT and bonus income usually needs a 2-year history to count.
- • $1/hr raise at full-time = about $2,080/year before OT effects.
- • Comparing to a salaried offer? Subtract the value of benefits you would lose.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
FAQ
What is $28 an hour annually?
About $58,240 working 40 hours for all 52 weeks, before overtime. At 50 paid weeks it is $56,000.
How do I convert hourly to monthly?
Multiply your weekly gross by 52, then divide by 12. $30/hour full-time = $1,200/week = about $5,200/month.
Does overtime count toward annual income?
For your own math, yes — include it. For loan applications, lenders typically average OT over two years and may discount it if it looks unstable.
Is hourly or salary better?
Hourly pays for every extra hour (and OT after 40); salary protects pay during slow weeks and usually carries better benefits. Convert both to a true hourly rate including benefits to compare honestly.
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Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
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