The classic ‘×2080’ rule (40 h/wk × 52 wk) ignores unpaid holidays. Real-world annual hours are closer to 1,960 once vacation and public holidays are removed.

Use this to compare a contract hourly rate to a salaried offer — and remember to add ~25–30% for benefits the salaried role provides (health, 401(k) match, PTO).

Step-up raises compound: a 5% raise every year doubles your salary in 14 years.